JPMorgan and Goldman U.S. firms thought likely to be hardest hit by BREXIT


Costs increase and capital markets activity decline.

JPMorgan Chase and Goldman Sachs are likely to be hardest hit among America’s biggest banks by a possible British disavowal of the European Union this month, according to analysts at Keefe, Bruyette & Woods.

Bloomberg News reports that the two U.S.-based firms are 'most exposed to the potential negative fallout' from a so-called Brexit because they generate a large amount of their income from the U.K. compared with peers, the analysts led by Brian Kleinhanzl wrote in a research note dated June 15. JPMorgan’s and Goldman Sachs’s U.K.-based units generated a total of $14 billion in operating income in 2014, exceeding that of their three main U.S. rivals combined, according to the note.

All of the five biggest U.S. banks, including Bank of America, Citigroup and Morgan Stanley, would see costs increase and capital markets activity decline in the event of vote in favor of Brexit on June 23, according to the note.

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