Deutsche Bank is gearing up to re-home many of its trading and investment-banking assets back to Frankfurt from London over Brexit, according to a Bloomberg report.
Most of the trading and investment business done by the bank, which is Germany's largest lender, will be transferred to a new booking centre in Frankfurt, the sources claim, leading to the loss of 20,000 client accounts in the United Kingdom and a concomitant loss of several hundred traders' jobs.
Part of the problem relates to the loss of freedom of movement that would result from Brexit, with numerous bank's German employees in London facing uncertainty, though another bank insider played down the immediacy of any move, claiming that the move to a Frankfurt booking centre would be gradual.
The 18-month period the strategy is likely to be executed over remains subject to the outcome of Brexit negotiations, but Deutsche has become the latest in a line of banks eyeing up oversees moves in the wake of Brexit.
However, Deutsche Bank board member Sylvie Matherat suggested in April that it could move as many as 4,000 employees out of London as a result of Brexit.
Such a move, this source pointed out, would be a huge operation, with big investments required in new offices in the German financial capital, as well as in infrastructure and technology.
A handful of banks have recently said that they were setting up subsidiaries in Frankfurt as they prepare for Brexit, including Nomura Holdings Inc 8604.T and Daiwa Securities Group 8601.T .