Business

London 
could stall due to Brexit: Goldman CEO

LONDON: The progress of the UK capital as a financial centre could stall because of the upheaval Brexit will bring to the industry, Goldman Sachs CEO Lloyd Blankfein was quoted as saying by the BBC.

When asked whether London's long-term expansion over the past three decades would go into reverse, Mr Blankfein said: "I don't think it will totally reverse.

"It will stall, it might backtrack a bit, it just depends on a lot of things about which we are uncertain and I know there isn't certainty at the moment."

Most of the European Union's financial markets are currently run out of London, but banks have warned some of that business and the jobs that come with it will have to move if they lose access to the bloc's single market.

Goldman's CEO said he would like to see an implementation period of at least "a couple of years" once the Brexit deal is agreed, so that banks have time to adapt.

The bank has "contingency plans" to move people depending on the outcome of the negotiations, he said.

It wants to avoid cutting as many jobs as it can, Mr Blankfein said, adding that in 10 years' time, it was likely that London would remain its largest European office by a substantial margin.

He told the BBC it was important to guard against any rapid changes or fragmentation of financial activity. - REUTERS

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