The U.S. Banks Fighting Brexit
With the historic 'Brexit' vote looming, many in the financial world are anticipating how this will impact the global financial system. Several U.S. banks are concerned about the effects of a Brexit and have warned of layoffs in their European offices.
FOXBusiness.com looks at the banks in favor of and against Brexit.
1. Goldman Sachs
Goldman Sachs (NYSE:GS) donated £500,000 to the Britain Stronger in Europe campaign, according to the Electoral Commission, in February when donations had to be declared. Goldman's Chief Executive Officer Lloyd Blankfein has previously stated that the U.K. should stay in the European Union.
2. J.P. Morgan
J.P. Morgan (NYSE:JPM) donated £500,000 to the Britan Stronger in Europe campaign, according to the Electoral Commission. Recently, Daniel Pinto, J.P. Morgan's chief executive for corporate and investment banking, said that the bank will be forced to move thousands of jobs to Europe if Brexit happens. He also warned that a Brexit would "have substanial economic impact for a number of years."
3. Morgan Stanley
Morgan Stanley (NYSE:MS) donated £250,000 to the Britan Stronger in Europe campaign according to the Electoral Commission. Recent Morgan Stanley research found that a Brexit could push Europe into a full blown bear market. In a poll of clients, the bank found that a majority expect European stocks to decline about 10% in the three months after a potential Brexit, with a third predicting a 20% decline. A report from Bloomberg News stated that Morgan Stanley will potentially move 1,000 employees out of Britain if Brexit happens.
Citigroup (NYSE:C) donated £250,000 to the Britain Stronger in Europe campaign, according to the Electoral Commission. A recent report stated that Citi's U.K. head James Bardrick told staff in an email that Brexit would likely cause the bank to rebalance operations away from the U.K.
5. Bank of America
Bank of America (NYSE:BAC) has stayed out of the fray regarding Brexit, and multiple reports state that the bank has gone so far as to ban the term Brexit from being used. An earlier report stated that Bank of America was considering financially backing an anti-Brexit campaign, but reversed course. However, multiple BofA executives have been outspoken in their support for the U.K. staying in the EU, including European chief Alex Wilmot-Sitwell.