JPMorgan is considering axing plans for new European headquarters in Canary Wharf, London, in the wake of the bank bonus tax Alistair Darling, UK chancellor, announced in his pre-Budget report this month.
A senior JPMorgan executive said: âIt will be a factor in the decisionâ.
Bankers recognise that the 50 per cent bonus tax is a one-off measure this year justified by exceptional profits aided by international government bail-outs, but many see the tax as further evidence that the UK is becoming anti-bank.
Jamie Dimon, JPMorganâs chief executive, made that point to Mr Darling in a phone call shortly after the bonus announcement, people close to both men said.
He stressed the bank had been a âgood corporate citizenâ in London for decades and that if the business environment was deemed hostile, it could divert future investment elsewhere.
Certain trading functions are highly mobile such as foreign exchange, interest rates and commodities.
A JPMorgan insider said: âWhen weâre adding bodies in rates or FX, we can do that in New York as easily as London. When weâre building commodities, we can do it in Switzerland or Singapore.â
The bank had taken an option on a newly built headquarters in Canary Wharf in late 2008 to consolidate staff from several London buildings.
However, the bank has been uncertain for months whether to proceed because of financial uncertainty.
The UK Treasury is phlegmatic about such threats because it believes the one-off nature of the bonus tax will prevent companies leaving the UK.
The levy is pencilled in to raise £550m ($880m), although many analysts predict that it could raise a much higher figure.
The Treasury said last night that the chancellor had regular phone conversations with corporate figures. An official said: âThis is a fair measure. No bank would be left standing around the world without government intervention.â
http://www.ft.com/cms/s/0/e37b923e-f40f-11de-ac55-00144feab49a.html
Economic wars have just began...
A senior JPMorgan executive said: âIt will be a factor in the decisionâ.
Bankers recognise that the 50 per cent bonus tax is a one-off measure this year justified by exceptional profits aided by international government bail-outs, but many see the tax as further evidence that the UK is becoming anti-bank.
Jamie Dimon, JPMorganâs chief executive, made that point to Mr Darling in a phone call shortly after the bonus announcement, people close to both men said.
He stressed the bank had been a âgood corporate citizenâ in London for decades and that if the business environment was deemed hostile, it could divert future investment elsewhere.
Certain trading functions are highly mobile such as foreign exchange, interest rates and commodities.
A JPMorgan insider said: âWhen weâre adding bodies in rates or FX, we can do that in New York as easily as London. When weâre building commodities, we can do it in Switzerland or Singapore.â
The bank had taken an option on a newly built headquarters in Canary Wharf in late 2008 to consolidate staff from several London buildings.
However, the bank has been uncertain for months whether to proceed because of financial uncertainty.
The UK Treasury is phlegmatic about such threats because it believes the one-off nature of the bonus tax will prevent companies leaving the UK.
The levy is pencilled in to raise £550m ($880m), although many analysts predict that it could raise a much higher figure.
The Treasury said last night that the chancellor had regular phone conversations with corporate figures. An official said: âThis is a fair measure. No bank would be left standing around the world without government intervention.â
http://www.ft.com/cms/s/0/e37b923e-f40f-11de-ac55-00144feab49a.html
Economic wars have just began...