Goldman Sachs executive urges Brexit transition deal as soon as possible
Goldman Sachs Group Inc.
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11:10 23/04/24
The government should seek to implement a significant transition period for Brexit from March 2019, one of Goldman Sachs’ top executives has said.
Dow Jones I.A.
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Richard Gnodde told the BBC on Friday that negotiations between the EU and UK teams should attempt to reach an agreement on such a transition period as soon as possible.
Many banks and major financial institutions are currently preparing contingency plans for a hard Brexit in March 2019, in which many of their employees would lose their significant passporting rights immediately.
Gnodde said however that was to be avoided at all costs, if investment banks such as Goldman Sachs are to retain as much business in the UK as possible.
"The other way to describe the contingency plan is that we're buying insurance, so I'm spending money every single day to make sure that come March 2019 I'm open for business," said Gnodde.
"If I knew today that we would have a significant transition period I could stop spending that (contingency) money because I know I would have time to transition my business.”
Gnodde, who is Goldman’s most senior executive outside of the US, added that its contingency plan involves adding hundreds of staff to other European offices outside the UK.
"We will maintain a very significant presence in London. But if the rules require us to have more on the continent we will have more on the continent," he said.