JPMorgan’s decision to build a 3 billion headquarters in Canary Wharf looks like a sign of confidence in London’s financial sector and the UK’s prospects.The higher taxes, regulations and political dysfunction in Paris/Frankfurt were likely big factors in JP Morgan’s decision.
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JPMorgan Chase could have chosen Paris, Frankfurt or even Amsterdam. Yet the giant US bank has decided to build a new £3 billion European headquarters in London’s Canary Wharf instead. That is a huge vote of confidence in London and the City at a time when faith in the British economy has reached its lowest point in recent memory. It is also a sign that the Brexit wars have finally been won – and the City will remain the key financial hub for Europe.
Given the UK’s recent dismal track record of delaying any kind of new project, and allowing costs to escalate with dozens of unnecessary regulations, it may be a few years before the diggers and cranes actually get to work. Even so, with 12,000 square feet of space, it will eventually be a huge addition to the Wharf’s existing floor space and it will be home to 12,000 staff, making it the bank’s major hub for Europe and the Middle East. Canary Wharf has been struggling since the pandemic as firms adapted to working from home. A major new tower will boost the Wharf after a difficult few years.
In the aftermath of the UK’s departure from the EU, Paris and Frankfurt, with the help of officials in Brussels, made a huge effort to replace London as the key financial centre for the continent. In Paris, president Emmanuel Macron introduced special tax deals for bankers fleeing across the Channel, and the French regulators even translated all their forms into English to make the paperwork easier.
MoneyWeek
Meanwhile, Frankfurt created promotional videos selling the lifestyle to be enjoyed there to London-based finance workers. Huge amounts of money and energy were poured into the campaign and there was lots of speculation that one or the other would become Europe’s main financial centre, with London reduced to little more than a regional outpost.
We don’t hear very much about that any more, and for good reason. In reality, both cities have become less appealing over the last few years. The bankers who moved to Paris have found that promises of lower taxes have turned out to be illusory.
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JPMorgan’s decision to build a 3 billion headquarters in Canary Wharf looks like a sign of confidence in London’s financial sector and the UK’s prospects.The higher taxes, regulations and political dysfunction in Paris/Frankfurt were likely big factors in JP Morgan’s decision.
JPMorgan Chase could have chosen Paris, Frankfurt or even Amsterdam. Yet the giant US bank has decided to build a new £3 billion European headquarters in London’s Canary Wharf instead. That is a huge vote of confidence in London and the City at a time when faith in the British economy has reached its lowest point in recent memory. It is also a sign that the Brexit wars have finally been won – and the City will remain the key financial hub for Europe.
Given the UK’s recent dismal track record of delaying any kind of new project, and allowing costs to escalate with dozens of unnecessary regulations, it may be a few years before the diggers and cranes actually get to work. Even so, with 12,000 square feet of space, it will eventually be a huge addition to the Wharf’s existing floor space and it will be home to 12,000 staff, making it the bank’s major hub for Europe and the Middle East. Canary Wharf has been struggling since the pandemic as firms adapted to working from home. A major new tower will boost the Wharf after a difficult few years.
In the aftermath of the UK’s departure from the EU, Paris and Frankfurt, with the help of officials in Brussels, made a huge effort to replace London as the key financial centre for the continent. In Paris, president Emmanuel Macron introduced special tax deals for bankers fleeing across the Channel, and the French regulators even translated all their forms into English to make the paperwork easier.
MoneyWeek
Meanwhile, Frankfurt created promotional videos selling the lifestyle to be enjoyed there to London-based finance workers. Huge amounts of money and energy were poured into the campaign and there was lots of speculation that one or the other would become Europe’s main financial centre, with London reduced to little more than a regional outpost.
We don’t hear very much about that any more, and for good reason. In reality, both cities have become less appealing over the last few years. The bankers who moved to Paris have found that promises of lower taxes have turned out to be illusory.