Home Business NewsBusiness Morgan Stanley’s chairman James Gorman warns the PM on Brexit risk

Morgan Stanley’s chairman James Gorman warns the PM on Brexit risk

29th Mar 17 8:12 pm

This is what happened

Mr Gorman who is the Chairman and Chief executive of one of Wall Street’s most powerful firms has warned the Prime Minister, Theresa May of staff relocations to rival financial cities.

Sky News has learned that Mr Gorman said to the Prime Minister that other cities have approached them to lure various parts of the business away from London.

James Gorman was at an event with hundreds of their clients present to warn Theresa May who was speaking at the event, of the approaches made.  The event was to mark the 40th anniversary of Morgan Stanley being in London.

One person who was at the event whilst Theresa May was present said: “He wasn’t very diplomatic, given that the Prime Minister had given up her time to speak at an event for Morgan Stanley’s clients.”

The chief executive of Morgan Stanley International, Robert Rooney, said to the bank’s staff: “Throughout the process, our main objective has been to ensure that we can continue to serve our clients whatever the outcome of Brexit.”

“As prudence, would dictate, we have been preparing for a worst-case scenario, in which we would need to establish a more significant entity within the EU 27.”

“We have had a strong franchise and material presence in the EU 27 for many years, with offices in Budapest, Frankfurt, Paris, Milan, Madrid, Dublin, Stockholm, Amsterdam, Luxembourg and Warsaw.”

“Our franchise and presence in Europe gives us many options and we intend to fully leverage those offices and licenses that we already have.”

“With the triggering of Article 50, we continue to monitor the situation very closely and, when appropriate, will take the necessary decisions and begin to execute on our plans.”

Last week Goldman Sachs said that certain roles were already shifting and they have recently updated their contingency.

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