Credit Suisse has decided to move some of its investment bankers away from London after the U.K. left the European Union. One of the new European hubs of the business will be Madrid.
Switzerland’s second-largest bank plans to shift some of the investment banking operations from the City of London to Madrid and has applied for the required license at Banco de Espana and the European Central Bank, according to a report by Spanish newspaper «Expansion» (behind paywall). Credit Suisse so far only had a brokerage license in Spain and will now need a full banking license.
The bank’s head of Spain and Portugal, Wenceslado Bunge, told the newspaper that the decision to seek a full license was connected to Britain’s exit from the European Union – Brexit.
Paris – or Madrid – or Frankfurt?
The move of some of its staff to Madrid had been part of the bank’s considerations of how to react to Brexit, while other options included Paris and Frankfurt. Insiders to the decision have said that Chairman Urs Rohner and ex-CEO Tidjane Thiam had been at loggerheads over the move.
Thiam is said to have given preference to Paris, while Rohner had voiced his support of Madrid. Credit Suisse hasn’t so far commented on the report. But the bank has consistently emphasized its intention to keep staff based in London, where it currently has some 5,000 investment bankers based. Newspaper «Expansion» said that some 50 bankers had moved to the Spanish capital already.
