Fresh contagion fears are threatening to sweep across Britain after Deutsche Bank revealed it’s considering cutting down its UK operation if the country pulls out from the EU.
The euro zone’s second largest bank, which has almost 9,000 staff in Britain, has formed a working group to consider moving some operations to Germany or elsewhere in the euro zone in case of a so-called “Brexit.”
A number of banks have now reportedly put off possible investments amid complaints of uncertainty over EU questions and so-called punitive tax measures.
Goldman Sachs, JPMorgan, Bank of America Merrill Lynch and Morgan Stanley say they have not made any formal contingency plans if Britain exits the EU. Some banks, however, with large operations in the UK are expected to begin examining the implications and whether this might limit Britain’s access to its largest trading partners in Europe.