Project Fear turns REAL: Goldman Sachs say Brexit risk behind secret German move talks
THE chief of the world's second biggest bank has said the risk of Brexit imploding has forced the bank to make plans for a premature move to Germany.
Goldman Sachs CEO reveals possible relocation due to Brexit
Goldman Sachs boss Lloyd Blankfein said the City "will stall" thanks to Brexit, which could put Britain's place in the world in peril.
Mr Blankfein said if London wants to remain as the banking capital of the world, Britain needs a close partnership with Europe.
The veiled threat also saw the financial chief reveal the bank has made "contingency plans" to move operations to Germany.
The shocking plan comes after other banks have issued similar warnings about moving jobs
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In an interview with the BBC, Mr Blankfein revealed secret talks had taken place with Frankfurt about relocating some of its 6,500 London-based staff.
The shocking revelations come after other banks have issued similar warnings about moving jobs to the continent.
The investment firm boss said the future of Britain as a hub for finance depended on the outcome of the negotiations.
He said he would rather stay in Britain, but was concerned about the direction of Brexit talks.
The financial chief reveal the bank has made "contingency plans" to move operations to Germany.
The future of Britain as a hub for finance depended on the outcome of the negotiations
It will stall, it might backtrack a bit, it just depends on a lot of things about which we are uncertain
The EU has threatened that any Brexit deal will not be as economically advantageous to Britain as being a full member of the bloc.
Referring to the heated remarks in recent days, the Goldman Sachs boss added: "A couple of years is a long time for people to calm down and really take stock of what their long term economic interests are."
The financial risk of Brexit going wrong could mean the US institution following through on a "premature" move to Germany.
He told interviewer Kamal Ahmed: "It will stall, it might backtrack a bit, it just depends on a lot of things about which we are uncertain and I know there isn't certainty at the moment."
Goldman Sachs chief says City of London ‘will stall’ because of Brexit
Mr Blankfein added that there was a risk of banks having a "smaller footprint" in Britain.
He explained: "If you cannot benefit from access to the EU from the UK - and nobody knows what those rules and determinations will be - then the risk is there will be some adjustment that will cause some people to have a smaller footprint in the UK."
More than a million people work in the financial services sector across the UK, which pay over £70bn a year in taxes.