2017.03.2203:04:00UTC+00Goldman, Morgan Stanley Lay out Relocation Plans Ahead of Brexit

Top Goldman Sachs Group Inc. and Morgan Stanley executives have signaled that they are getting ready to relocate jobs and headquarters from London to another area in the European Union as PM Theresa May prepares to set into motion Brexit negotiations.

The announced contingency plans comes a day after PM May's office announced her intention to start the two-year period of divorce talks with the bloc on March 29, according to Richard Gnodde of Goldman Sachs. The co-chief of investment banking said that the lender will first relocate hundreds of workers based in London to grow other offices following the split.

According to sources, Goldman Sachs is considering to establish its hub in EU at Frankfurt and looks to move as many as 1, 000 workers, which will include traders and senior staff.

Meanwhile, Morgan Stanley President Colm Kelleher said that while the bank sees a need to move some of its employees, he said that the lender will try to prevent making “grand statements”. He underlined that certain adjustments will be made, but London will still be in their plans.

Morgan Stanley is looking for a place to establish their office in Frankfurt and Dublin for an expanded EU hub, people said. The bank may also initially shift around 300 workers to one of the mentioned cities.