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JP Morgan to move $230 bln out of UK - source

JP Morgan is moving money out of the UK.

A lot of money.

About 200 billion euros in all, or around 230 billion dollars.

That’s according to a Reuters source.

Its move comes after the bank said back in January that it would expand operations in Paris to prepare for life after Brexit.

The source didn’t say what type of assets are being moved.

But analysts say it would typically include cash, stocks and bonds held in inventory for clients to trade.

On this occasion the destination is said to be Germany.

Now JP Morgan is just the latest to suck cash out of the City of London.

Earlier this year Barclays moved its European headquarters to Dublin.

It too moved about 230 billion dollars as part of that.

Banks are acting on the assumption they will no longer be able to bow all their European trading out of London.

Clients will trade with the lenders’ local entities rather than their London units.

Banks using Britain as a gateway to the EU will have to fully execute such plans before the Brexit transition period ends in December.

Last year, consultancy EY estimated that assets worth almost 1 trillion dollars were set to move.