The Hague - The Deutsche Bank is considering whether to cease all its operations in Britain if it pulls out of the European Union.
Western news media have been all agog after the British Financial Times broke the story. Several media, including Bloomberg, Der Spiegel, Handelsblatt and Het Financieele Dagblad, sought and received confirmation from the banking giant, which employs about 9 000 people in the UK.
The Deutsche Bank has had a presence in the country ever since 1873.
No decision has yet been taken, but the organisation is the first to formally start an investigation about how to respond to a possible “Brexit” - a British exit from the 28-nation EU. Prime Minister David Cameron recently won a general election, partly on the strength of a promise to renegotiate the terms of Britain’s EU membership and then let the voters decide in a referendum within two years whether they want in or out.
Since then, there have been reports that Cameron wants to move the referendum up to next year, as several other EU members, including Germany, will be voting in general elections in 2017. He is worried that this might complicate the referendum at home.
According to the Financial Times, Deutsche Bank’s move “is seen by rivals in the industry as an early attempt to sway the debate in favour of the UK staying in the EU”. Most big financial services groups want to stay in the EU, as they fear the risks of a Brexit.
The newspaper says senior officials have established a working group, reporting to the management board, to investigate whether to move some or all of the bank’s activities out of the UK in case Cameron loses a referendum. The move will probably be to Germany itself.
Some big US banks, including Citigroup and Morgan Stanley, have indicated that they might move to Dublin if the UK opts for a Brexit.
There are about 250 foreign banks in London, covering the European continent. Some, if not all, might leave the City.
According to several news reports, Deutsche Bank declined to comment.