Post-Britain’s exit from the European Union, Citigroup Inc. (C - Free Report) is formulating the relocation of up to 900 jobs from London to Dublin. This is part of the company’s contingency plan to deal with the growing uncertainties of Brexit.
Per The Sunday Times, Citibank conducted a board meeting in Dublin last month, and was trying to explore options for office space in the Irish capital. The company’s chief executive Mike Corbat and Chairman Michael O’Neill attended the meeting.
The newspaper quoted a source saying, "They have been testing the Irish political and regulatory regime on a macro level."
Per the U.K. head of Citi, regardless of what deal Britain will enter into for access to the financial services market in the European Union, jobs in London will be shifted to other countries. Notably, U.K Citi has 9,000 employees.
According to some Irish officials, many banks are reconsidering using London as their workplace and hence, are preparing to move some of their business from London to Dublin.
Moreover, currently Ireland is being presented as the only country in Europe that uses English as their language and therefore, can help banks near London to continue their operations. Also, its labor laws are flexible and it has good transportation links to the U.S. Additionally, the country has a good reputation with regards to back-office fund management operations.
Apart from Citi, various other banks like JPMorgan Chase & Co. (JPM - Free Report) and Bank of America Corp. (BAC - Free Report) have either already established their offices in Dublin or have the license to conduct business there.
Currently, Citigroup carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stock in the finance space is Carolina Financial Corporation (CARO - Free Report) , sporting a Zacks Rank #1. It has witnessed an upward earnings estimate revision of 12.9% over the last 30 days and its share price is up 38.9% year to date.
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