Exclusive: Germany calls bankers to Frankfurt for Brexit move talks - sources

Wed Jan 25, 2017 10:13am EST
 
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By John O'Donnell, Anjuli Davies and Andreas Kröner

FRANKFURT/LONDON (Reuters) - German regulators will meet more than 20 foreign banks on Monday to spell out requirements for moving some operations to Frankfurt, people familiar with the matter said, as the city accelerates plans to win over business from London after Brexit.

The meeting, the first such gathering of its kind in Germany, is being hosted by financial supervisor Bafin to cope with increasingly detailed inquiries from banks as Britain prepares to trigger EU divorce talks, people involved said.

"Bafin wants to give the participants an overview of the main issues for those who want to move businesses to Germany after Brexit," said one of the people involved.

The sources said Bafin would make it clear that no "letter-box" operations would be accepted and that banks would have to have significant risk management arrangements and senior executives based in Frankfurt.

Other people said officials from the German central bank and the European Central Bank would also attend.

Bafin, which has close ties to the finance ministry, confirmed that the meeting would take place but declined to give further details. The Bundesbank and the ECB declined to comment.

About 40 executives will attend Monday's gathering, to be held as German Finance Minister Wolfgang Schaeuble discreetly starts supporting Frankfurt's efforts to attract thousands of bankers from London, according to people familiar with government thinking.

Many Germans are skeptical about the practices of largely U.S. and British investment banks, that often run their international operations from London. This view was reinforced when Deutsche Bank - a German bank on Wall Street - had to pay $7.2 billion in U.S. penalties for selling toxic mortgage securities before the 2008 financial crisis.   Continued...

 
FILE PHOTO - The moon is partly covered by clouds as it rises above the skyline of Frankfurt, Germany, early evening November 14, 2016. REUTERS/Kai Pfaffenbach/File Photo