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WFC - Wells Fargo & Co News Story

$42.47 -1.7  -3.8%

Last Trade - 27/02/20

Sector
Financials
Size
Large Cap
Market Cap £136.28bn
Enterprise Value £395.00bn
Revenue £66.02bn
Position in Universe 38th / 6409

UPDATE 1-JPMorgan says "oui" to Paris expansion post-Brexit

Mon 20th January, 2020 3:33pm
(Adds Elysee source, financial lobby comment, links to
companies' investments)
    By Gwénaëlle Barzic and Maya Nikolaeva
    PARIS, Jan 19 (Reuters) - JPMorgan Chase & Co  JPM.N  is the
latest investment bank to significantly expand its Paris hub as
part of plans to relocate some services from London after
Britain's exit from the European Union, snapping up new premises
in the French capital.
    JPMorgan would have said "No" to a Paris move back in 2016,
its French executive told Reuters, but government-led labour law
and taxation reforms made it review its stance.
    The U.S. bank said it plans to buy a building in central
Paris from France's BNP Paribas to house up to 450 staff in
coming years, allowing it to keep operating in the EU once the
current unfettered two-way direct access between Britain and the
bloc comes to an end in December following a Brexit transition
period.
    The expansion is expected to make the French capital, where
it currently has 260 staff, its second-largest base in Europe
behind London, where there are 10,000 staff, JPMorgan said.
    It currently has 600 staff in Luxembourg and 450 in
Frankfurt.
    The bank will initially transfer sales teams, followed by 
trading staff depending on the timing of Britain's full
withdrawal from the European Union, Kyril Courboin, JPMorgan's
CEO of France, told Reuters.
    "Paris is going to be the second pole for our market
activities in Europe," he said. "London will still be number one
because we are only transferring euro activities."
    He declined to disclose the purchase price of the new
building, which is close to JPMorgan's existing Paris offices on
the prestigious Place Vendome.
    The move is part of a wider trend of banks shifting selected
activities to euro-zone cities ahead of Brexit, without calling
into question London's dominance as Europe's premier financial
centre.  urn:newsml:reuters.com:*:nL5N26H54K
    
    MORE TO FOLLOW?  
    Large international banks and investors could relocate
around 4,000 jobs to Paris, the French financial lobby Paris
Europlace said, citing data from "Choose Paris Region", which
helps international companies set up business in Paris.
   "In addition to the new announcements made by American
banks...Asian investors, from HongKong and Singapore...confirm
their wish to strengthen their activities in Europe, in
particular in Paris," Arnaud de Bresson, chief executive of
Paris Europlace, told Reuters.
    Wells Fargo, which currently has three job openings in
Paris, said in October it had chosen the city as its European
hub for post-Brexit trading activities. 
    Bank of America  BAC.N  also plans to move more than 400
jobs into a new office in central Paris.
    An Elysee official said JPMorgan was one of several large
banks who have been considering a move to Paris, without naming
others, leaving open the possibility that more jobs will be
relocated to the "city of lights". 
    The building purchase by JPMorgan was announced on Sunday as
part of the "Choose France" drive, an annual investment event
created by President Emmanuel Macron to draw business leaders to
France en route to the World Economic Forum in Davos each
January.  urn:newsml:reuters.com:*:nP6N29801F urn:newsml:reuters.com:*:nFWN29P0MF urn:newsml:reuters.com:*:nL8N29P2H2 urn:newsml:reuters.com:*:nFWN29N04Y
    
($1 = 0.9019 euros)

 (Reporting by Gwenaelle Barzic and Maya Nikolaeva, writing by
Gus Trompiz
Editing by Alexandra Hudson and Kirsten Donovan)
 ((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters
Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
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