JPMorgan Chase envisages increasing the number of bankers and traders, which it intends to transfer from London across to Paris following the UK’s exit from the European Union (Brexit).
The information was indicated to AFP (Agence France Press) by a source close to JPMorgan Chase.
The press agency had previously learned in October that the American bank was going to redeploy to 60 to 80 bankers and traders to Paris. The anonymous source stated on Wednesday that this figure will now be “far more significant”. However no further details were given.
The firm made its intentions known during a meeting on Wednesday in New York between some of its directors and the managers of Paris Europlace, the association with responsibility for promoting the Paris as a financial centre.
The source further said that, as with the other American banks, it is not yet certain that JPMorgan will make an official announcement. When contacted by AFP, JPMorgan Chase did not wish to comment.
The strengthening of JPMorgan’s position in Paris is a victory for the French capital, which for several months now has been rolling out the red carpet to welcome multinationals.
Moreover it increases the advantage of Paris over Frankfurt, its principal rival in the race of European capitals to attract London financial institutions, constrained by the UK’s departure when Brexit formally takes place.
Paris is claiming 3,000 to 4,000 direct financial jobs already promised, or nearly half of the 10,000 objective by 2019, which the authorities have set as a target.
Frankfurt, which was hoping to welcome 6,000 financial jobs redeployed from London this year, has significantly revised this figure downwards to below 1,000.
Gérard Mestrallet, Chairman of the Board of Engie and the head of Paris Europlace assured AFP, “We are going to increase our lead on Frankfurt.” He was speaking on the margins of a forum of the association in New York. “It has been a game-changer. France is in the process of reforming. That is a given, even though it has previously been said that we were not able to be reformed.”
To convince foreign investors, and specifically Americans, Paris Europlace is putting forward as advantages reforms upon easing the taxation of companies and banking institutions, and the flexibility of the employment market initiated by the Macron government, as well the opening of new universities within the Paris region.
Villeroy de Galhau, the Chairman of the Bank of France, boasted yesterday, “France is heading in the right direction and at a rapid pace, with the government’s strong commitment to reform.” He said this during a speech in the presence of economic decision-makers in New York.
Furthermore, JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America and Citigroup, five of the six major American banks, have decided to strengthen their French presence. As one example, a source close to Bank of America said it will transfer up to 300 traders from London to Paris.