What happened and why Brexit is real. It happened. And despite the deal struck 5 seconds before crossing the finish line, uncertainty over the meaning and implementation of the new set of rules is still the dominant feeling floating around the UK. And the financial sector is not immune. The institutions that were at the forefront of turning London into the financial capital of Europe initiated the relocation process for senior executives to European mainland. Goldman Sachs Group Inc. is just one of them... Their departure is leaving behind a grim picture...A blow to the economy… Experts anticipate thousands of investment banking specialists will be leaving. Grim news for the UK economy as they make up a large share of Britain’s highest paid taxpayers. Data shows that they bring in 10% of the British tax revenue... their departure leaving a massive dent into the economy.Defining finance after Brexit… In spite of the December deal settled on by the EU & UK, they are only at the beginning of defining what financial service regulations look like after Brexit. Companies decided that moving $1TR assets and 000s of jobs across The Channel is the right choice for now. The middle man… London-based bankers can no longer approach interested corporate clients through head-on pitching or fundraising propositions. In comes the middle man, an EU country resident, whose purpose is to chaperone the deals. Dealing with the Brexit issue:Goldman Sachs Group Inc. is expanding on the continent and relocating investment bankers and senior executives to Madrid and Frankfurt.Credit Suisse Group AG is using EU based chaperones to close deals, not only for investment proposals but also M&A. The Takeaway All-round obstacles... Besides the dent into the UK economy, the 000s of jobs and trillion assets moved across the English Channel, national regulators, like Germany's Bafin, are also warning a strict adherence to the current regulations, with no exceptions. Defining what investment banking after Brexit means will take time. However, patience is not everyone's virtue, leaving London's legacy of being "Europe's financial capital" up in the air until further notice...
