US bank denies claim of planned move to Dublin
Published 25/06/2016 | 02:30
Morgan Stanley yesterday denied that it had begun moving 2,000 investment banking staff out of London just hours after the result of the Brexit referendum.
In a signal of the vulnerability of the City of London's vast financial sector following the vote, the BBC reported that the US investment bank had kicked off a process to move key investment banking jobs from Britain to either Dublin or Frankfurt.
However, a spokesman for Morgan Stanley quickly denied the story. But the prospect of a massive shake-up in Europe's financial capital is real.
Morgan Stanley's Irish company president, Colm Kelleher, had said so before the vote. London serves as a banking, insurance and professional services hub for the entire European Union - but when it is outside the bloc that may no longer be sustainable.
Policymakers here are keen to get a slice of any activity that does leave the UK. However, Dublin's relatively much smaller market will struggle to attract the highest-value banks and financial-services firms here, the head of a major cross-border body has warned.
Dublin may lack the capacity to capitalise on a City break-up, according to John McGrane, chief executive of the British-Irish Chamber of Commerce.
That is related to both physical assets, such as the lack of large-scale office space here, but also skills and the size of the workforce.
Dublin is "not really aligned" to providing the highest-value end of financial services but does well in midscale and middle-range areas, he said.