Goldman Sachs admits it is 'considering' its options following Dublin move reports

GOLDMAN SACHS HAS said that it is “considering” its post-Brexit options following reports it will move one of its London units to Dublin.

Citing sources familiar with the US bank’s plans, the Financial Times has reported that 20 workers will be relocated from Goldman Sachs’ European asset management business from the UK to Dublin.

Goldman Sachs Asset Management has over 400 employees in the UK and, in a statement today, the company said it is looking at what changes need to be made.

“We have not chosen Dublin as home for our European asset management business. As part of our Brexit planning we are considering options related to elements of fund administration within the EU,” according to a spokesperson for the company.

“Any headcount changes would be small in the context of our asset management business.”

Earlier this year, Goldman Sachs said it would handle its European business from new hubs in both Paris and Frankfurt.

Goldman Sachs chief executive Lloyd Blankfein has previously called for a second referendum to be held on Brexit with his latest tweet also outlining some his concerns.

New bases

Numerous financial firms with London operations have been scouting for new EU subsidiaries since the UK’s decision to leave the EU to ensure they can continue to serve European clients post-Brexit.

Many international banking firms have already chosen to open up new operations in Ireland and other locations on the continent.

Earlier this year, Bank of America confirmed that it will set up its new EU hub in Dublin after Brexit. The company said that it planned to move some roles from London to Dublin following the UK’s decision to leave the EU.

Meanwhile, JP Morgan confirmed during the summer that it purchased a new large office space in the heart of Dublin’s docklands.

The office building of around 130,000 sq ft, that will be able to accommodate 1,000 workers, is expected to be completed in the third quarter of 2018.

At the beginning of 2017, it was reported that Barclays Bank was also planning to set up a base in Dublin if Brexit negotiations failed to secure continuing passporting rights for British finance firms.

At the time, the bank moved to downplay suggestions that it would shift some of its activity away from the UK and said that its headquarters would stay in London.

In August, it was announced that Barclays Bank signed a lease to rent more than half of a new office block under development on Molesworth Street that’s capable of housing up to 430 staff.

Struggle

It has been suggested previously that Ireland could struggle to deal with the influx of financial firms if they choose the Republic as their new hub post-Brexit.

Some shortcomings were highlighted by Paul McAuliffe, chairman of Dublin City Council’s economic development and enterprise committee.

“One man remarked to me recently that if even one percent of London’s economic activities migrated here, we would be absolutely crippled and I would have to agree with his assessment,” he said.

McAuliffe also cited a litany of shortcomings, from a dearth of properties for sale or rent, patchy public transport that causes daily traffic gridlock to the existence of a single runway at Dublin Airport.

Written by Sinead O’Carroll (with reporting from Killian Woods) and posted on TheJournal.ie

UPDATE: This piece has been updated to include a comment from Goldman Sachs.

Sign up to our newsletter to receive a regular digest of Fora’s top articles delivered to your inbox.