Bank of America has spent $300 million to $400 million getting ready for a potential hard Brexit, CEO Brian Moynihan said.
Blooberg News reports that the bank’s preparations include establishing a hub in Dublin and a broker-dealer in Paris, moving staff, creating legal entities and redoing contracts so that it’s ready to operate when the U.K. departs the European Union in March.
In the meantime, Bloomberg reports that the major U.S. investment banks are planning to shift assets to Frankfurt because of Brexit, a move that would see their balance sheets in Germany grow to about $283bn, several people briefed on the matter said.
Goldman Sachs, JPMorgan Chase, Morgan Stanley and Citigroup have presented plans to increase the assets held through their Frankfurt subsidiaries tenfold after the U.K.’s exit from the EU to comply with requirements, the people said. They asked not to be identified discussing private information.