JP Morgan Consolidates EU Business into Single German Business

JPMorgan Chase & Co in New York City, May 20, 2015. The appearance of the head office. (Mike Segar / Reuters)

London — US banking giant JP Morgan aims to consolidate most of the European Union’s operations into a single German entity, making the operations in the block more competitive after the UK’s departure. He said on Monday that he was there.

The bank said it simplified the structure of Europe by integrating the Luxembourg and Irish entities into its German business, JP Morgan AG.

JPMorgan said the new integrated business will “become one of the five largest banking entities in Germany” and will be among the top 20 under the supervision of the European Central Bank (ECB). The total capital base will be about 34 billion euros (38.51 billion dollars).

Major US banks have been reorganizing their operations in Europe since Brexit as they are no longer able to serve EU customers outside of London. By allocating most of the EU’s business to a single entity, the total capital that JP Morgan needs to hold is reduced, and by combining various liquidity pools, JP Morgan’s operations are cheaper. Become.

The reorganization of the Group’s EU corporate structure did not include changes to existing office locations, JP Morgan added.

($ 1 = 0.8829 euros)