JPMorgan executives acknowledged the bank could seek to change its legal structure and some of its geographic positioning in the wake of a leave win.
Brits voted Thursday in favor of the United Kingdom exiting the European Union, but just what that means for big multinational banks is not yet clear.
In an early Friday statement JPMorgan Chase CEO Jamie Dimon, JPMorgan Asset Management CEO Mary Erdoes, and Daniel Pinto, JPMorgan's chief executive for corporate and investment, recognized that there are likely challenges ahead for the banking giant.
As was anticipated by many, the executives acknowledged that the bank could seek to change its legal structure and some of its geographic positioning "to comply with new laws as we serve our clients around the world."
One of the major concerns leading up to the Brexit vote was that the U.K. was potentially embarking on an unprecedented journey. The uncertainty surrounding the future of British regulation and trade agreements could potentially throw a wrench into corporate planning for years to come. (The process of exit negotiation could take two years — or more.)
The prospect of that prolonged period of ambiguity is likely one of the major driving forces behind the violent market reaction to Friday's result announcement.
Here's JPMorgan's note in full:
Message from Jamie Dimon, Mary Erdoes and Daniel Pinto
British citizens voted yesterday to begin a new, independent relationship with the European Union. This decision is a seminal moment in European politics and in the history of the United Kingdom.
J.P. Morgan has 16,000 employees in the U.K. We are extremely proud of the work they do and our long history in the country. Regardless of today's outcome, we will maintain a large presence in London, Bournemouth and Scotland, serving local clients as we have for more than 150 years.
The framework of the U.K.'s engagement with the EU, including trade agreements, will be negotiated over a period of years. For the moment, we will continue to serve our clients as usual, and our operating model in the U.K. remains the same.
In the months ahead, however, we may need to make changes to our European legal entity structure and the location of some roles. While these changes are not certain, we have to be prepared to comply with new laws as we serve our clients around the world. We will always do our best to take care of our people and do the right thing during times of change.
We recognize the potential for market volatility over the next few weeks and we are ready to help our clients work through it. As of today, there are no changes to the structure of our clients' relationships with JPMorgan Chase or their ability to work with our firm, but again this may change in the coming months or years.
We are hopeful that policymakers will recognize the immense value created through a continued open economic engagement between the U.K. and EU members. As negotiations offer more clarity over the coming months, we will communicate with you and with our clients regarding any relevant changes.