Citigroup to choose Frankfurt as EU base

Citigroup will decide this week to base its EU operations in Frankfurt after Brexit, according to reports.

After the US powerhouse, which employs 9,000 people in the UK, had warned of moving “a couple of hundred” jobs away from London when the UK leaves the EU to create a new sales and trading hub, sources have told Reuters that Frankfurt will now be its destination of choice.

Sky News reports that the bank had analysed Paris as a potential location for a second EU-based broker-dealer that would cover many of London’s current market trading activities, but had decided against the French capital in favour of Germany.

The move to Frankfurt would not affect more than around 150 jobs, a source told Sky, but other Brexit relocations could affect staff numbering “in the low hundreds”

Citi declined to comment to the papers.

Many banks have been eyeing EU subsidiaries as the status of passporting rights, which allow banks to sell products across the bloc, remains uncertain.

Other Wall Street titans including Goldman Sachs and Deutsche Bank have expressed similar concerns to Citi about losing those rights.

Financial services lobbying groups however, including TheCityUK and Tisa, have downplayed the significance of a post-Brexit passporting agreement. TheCityUK is instead arguing for an “equivalence” regime.