Barclays may relocate to the US

http://www.bbc.co.uk/news/business-12908236

Barclays has been unveiled as the most customer complaint about financial institution in the UK, with Santander and Natwest following closely behind. HSBC, an international bank also based in London along with Barclays, has had recent talks of moving its base to China.

What implications will this have in the British economy if at all? London is one of the world's biggest financial centres behind Tokyo but it's future as a leading financial centre seems bleak after businesses like HSBC and Barclays shifting base and offshoring.

Consider for instance, by 2012 both HSBC and Barclays decide to relocate out of the UK, what implications will this have for the public, employees (aside from job losses) and customers of these banks?

(edited 13 years ago)

Reply 1

Aj12

HSBC said it won;t move.

Tbh moving a banks operation is something that will take years and cost a fair bit.

Reply 2

pol pot noodles

Original post by Dekota-XS

What implications will this have in the British economy if at all? London is one of the world's biggest financial centres behind Tokyo but it's future as a leading financial centre seems bleak after businesses like HSBC and Barclays shifting base and offshoring.

No, London IS the biggest financial centre in the world.
George Osbourne, Boris Johnson, Conservatives in general, you better stand by for a meeting with my left fist if you let another Great British Institution be ruined. Barclay's MUST stay HQ in Britain, if only for our ego.
And London's financial status is like the only thing IN THE WORLD we are number one at. Do not ruin it Tories.

Reply 3

Stratos

I say we get 5 tough guys on them.

Reply 4

cambo211

A better article than the one in the OP: http://www.reuters.com/article/2011/03/30/us-barclays-idUSTRE72T2W020110330

Reply 5

username547863

Original post by Aj12

HSBC said it won;t move.

Tbh moving a banks operation is something that will take years and cost a fair bit.

For Barclays i dont think it would be such a big operation. They already have setup shop in New York. It would just be all the admin/getting people there.

Reply 6

Jenny_Jazz

I'm with Barclays and have been for some years and I've never had any issues.
That aside, I think it would be terrible if it was to relocate elsewhere.

Reply 7

silent ninja

You seem to suggest they're wanting to move is linked to the number of complaints received. I very much doubt that.

The banks are throwing their toys out the pram. These may be empty threats, in protest against the (little) increases in taxes they face. I guess we'll find out. Our economy isn't the best prospect in the world, let's face it.

Anyway, I don't know much about China but I'd be surprised if they have a very open door softly-softly approach when it comes to regulation for long. China like to control everything. Maybe Hong Kong? HSBC relocated from there didnt they but again I don't know how much they've changed in the last decade. HK is a big financial centre though.

Reply 8

Iqbal007

Original post by Dekota-XS

I personally think, quite a lot of high earning jobs will be gone such front office and back office workers, however most of these high earners would happily go along with them to the US. Customers of these banks may lose confidence as they aren't as regulated as UK based banks, however this is capitalism. So it's fair for these companies to move abroad where they can make as much profit as they can without someone looking over their shoulder constantly. People have to realise that risk taking is an important of banks, which is why they are so big and able to provide so much to customers in the first place. Overall I think what the government is doing is wrong, as they forcing companies to think otherwise about whether there long term goals will be met, in the long term it may result in unforseen problems. I think the government should regulate them, but also keep them space in order to take risks so they are able to compete internationally.

Reply 9

MagicNMedicine

If the Barclays bigwigs are expecting a tax haven I suggest they go and have a discussion with the Republicans and the Tea Party, maybe they can advise them on the state of US regulation and taxes.

Reply 10

a_t

Original post by MagicNMedicine

If the Barclays bigwigs are expecting a tax haven I suggest they go and have a discussion with the Republicans and the Tea Party, maybe they can advise them on the state of US regulation and taxes.

It's not like they're paying much tax here...

Reply 11

DJKL

The possible moves are not prompted by tax, they are prompted by fears that possible/in discussion UK banking regulation will force them to divest certain of their operations which will have a significant impact on their business activities.

At present I do suspect some of the press comments are part of the negotiations re proposed reforms, however I also suspect that contingency planning is ongoing within the banks and I very much doubt their public comments are mere empty rhetoric. The stated £30 million, if true, (Today's Times) that Barclays are alleged to be spending investigating the art of the possible suggests to me that they are seriously looking at possible reactions to regulation at the more extreme end of the spectrum.