Bank of America has chosen Dublin as the base for its main European legal entities once Brexit kicks in.

The company, which currently has 700 staff in Ireland and about 6,500 in the UK, said that roles will be also moved to other EU destinations.

Chairman and chief executive Brian Moynihan said the Irish capital was a natural choice for the move as the bank already has a fully licensed and operational Irish-domiciled subsidiary there.

" Dublin is the home of more of our employees than any other European city outside of the UK," he said.

"We will move roles not only to Dublin but to other EU locations, with the focus on how we can best support our clients in these markets.

"While we await further clarity around the Brexit negotiations, we are making all necessary preparations to serve our clients however those discussions conclude."

The exact scale and nature of Bank of America operations being switched to Dublin has not been confirmed.

Irish Taoiseach Leo Varadkar met Mr Moynihan to discuss the plans and described the decision as a strong endorsement for Ireland.

"Bank of America has a long-standing commitment to Ireland and I look forward to this relationship growing and deepening in the years ahead," he said.

The announcement follows a number of big players in the city revealing post-Brexit plans for Frankfurt and Dublin.

Citigroup has opted for the German financial centre for b roker-dealer entity, while b anks including Standard Chartered, Japan's Daiwa and Sumitomo Mitsui Financial Group (SMFG), as well as South Korea's Woori Bank, have all confirmed plans for subsidiaries in Frankfurt.

Others including JP Morgan have indicated plans for a pan-European strategy, with proposals to spread staff across sites including Dublin, Luxembourg and Frankfurt.

The Press Association understands that Morgan Stanley has also chosen Frankfurt as the site of its post-Brexit hub.

IDA Ireland, the country's agency for attracting foreign investment, said Bank of America's decisions showed the importance of Ireland as a gateway to the single market.

Chief executive Martin Shanahan said: " This is yet another very important signal to the market that financial services companies can come to Ireland and service their European customers with minimum disruption to their business." </s> Bank of America has picked Dublin to locate its main European Union hub in preparation for Britain quitting the bloc in 2019.

The bank will move some roles from London to the Irish capital and other cities across the region, the bank said in a statement Friday. Bank of America already has a fully licensed operation in Dublin.

London has flourished as a hub for global finance in part because firms based in the capital have the right to do business across the 28-nation EU. After Brexit, British banks as well as London-based firms from the U.S., Japan and other non-EU countries stand to lose this "passport" and may need to channel their business through units based in the bloc.

"While we await further clarity around the Brexit negotiations, we are making all necessary preparations to serve our clients however those discussions conclude," Brian Moynihan, Bank of America chief executive officer said in the statement.

Dublin is a popular destination — along with Frankfurt — for financial-services companies seeking uninterrupted EU access post Brexit. Dublin provides a low-tax English-speaking location and shares similar laws and regulations to its U.K. neighbor. </s> Bank of America became the first US lender to picked Dublin as its new base for its EU operations as part of its strategy as Britain readies for its departure from the 28-nation bloc.

 “Dublin is the home of more of our employees than any other European city outside of the UK,” Brian Moynihan, chairman and chief executive of Bank of America, said.

 “We already have a fully licensed and operational Irish-domiciled bank which, combined with Ireland’s strong commitment to business and economic growth, makes Dublin the natural location to consolidate our legal entities as we transition,” he added.

 Bank of America currently has 700 staff in Dublin and a 6,500 workforce in the UK, of which 4,500 are based in London. The Wall Street lender first established an Irish presence in 1968.

 International banks are considering alternative locations in the bloc so they can continue serving clients if their London operations close once Britain leaves in March 2019.

 Citigroup and Morgan Stanley have both picked Frankfurt as bases for their EU hubs, while Barclays earlier said that was talking with regulators about extending its activities in Dublin.

 Dublin has been locked in competition with Frankfurt, Luxembourg and Paris to lure financial firms making contingency plans for Brexit.—Agencies </s> A Bank of America logo is seen in New York City, U.S. January 10, 2017.

LONDON/DUBLIN (Reuters) - Bank of America on Friday became the first Wall Street lender to pick Dublin as its new base for its European Union operations as Britain prepares to leave the bloc.

International banks are planning to set up subsidiaries in the EU to ensure they can continue to serve clients if their London operations lose the ability to operate across the bloc once Britain leaves in March 2019.

Frankfurt and Dublin are emerging as early winners for banks' post-Brexit operations.

"Bank of America has operated in Ireland and engaged in the local community for almost 50 years," said Brian Moynihan, chairman and CEO of Bank of America.

The bank did not say how many roles would be moved or created in the Irish capital, where it currently has over 700 staff and a fully licensed entity, but said that some roles would also move to other EU locations.

The Irish government, which has been keen to attract investment banks to Dublin, welcomed the news.

"This announcement...is a strong endorsement of Ireland's attractiveness as a location for investment, and of the government's approach to securing Brexit-related activities," Irish Prime Minister Leo Varadkar said following the announcement and a meeting with Moynihan in Dublin on Friday.

Details of banks' Brexit arrangements are starting to emerge following a July 14 deadline for them to submit details of their contingency plans to the Bank of England.

Wall Street's Citigroup Inc. and Morgan Stanley have both picked Frankfurt as bases for their EU hubs, whilst Barclays has said it is talking with regulators about extending its activities in Dublin.

Morgan Stanley is likely to spread some of its operations across the EU, with its asset management business expected to go to Dublin as well, a source familiar with the matter told Reuters on July 19.

Bank of America is extending its existing lease on its building in Leopardstown, Dublin, according to the Irish Times. The newspaper also reported the bank was in talks on two other office spaces in the city that would be able to accommodate up to 1,000 employees, giving it the flexibility to add up to 300 additional staff. </s> The Bank of America announced Friday that Dublin will be the new base for its European Union operations following Britain’s decision last year to split from the EU. Brian Moynihan, CEO of the Charlotte-based bank, made the announcement during a trip to the Irish capital city. It becomes the latest large U.S. bank in recent weeks to disclose plans for continuing to serve clients in EU countries following the so-called Brexit vote in 2016.

In a statement, Moynihan called Dublin the “natural location” for consolidating the bank’s legal entities, noting Bank of America already has an Irish-domiciled bank.

The chief executive also noted Dublin is home to more Bank of America employees than any other European city outside of the U.K., and that the bank has operated in Ireland for almost 50 years.

Big banks have been disclosing more details about where they will base hubs in order to continue accessing EU markets after the March 2019 Brexit deadline.

On Thursday, Citigroup employees were told the New York-based bank may hire 150 new staff in the EU as it bolsters Frankfurt as its newest trading, Bloomberg reported. JPMorgan Chase’s investment banking head in May said the New York-based bank planned to move hundreds of London-based bankers to expanded offices in Dublin, Frankfurt and Luxembourg. Other banks have also discussed Brexit plans.

Moynihan, who met Friday with Irish Prime Minister Leo Varadkar, said the bank will move roles not only to Dublin but also to other locations in the EU. Moynihan told the Financial Times it was too early to give specifics but the bank would definitely have more people in Dublin than the 700 it currently has, the news outlet reported. That will be achieved through a combination of new hires and moving staff from the bank’s London office, the FT reported.

Bank of America’s selection of Dublin was not a complete surprise. In March, Bloomberg anticipated one of the bank’s top executives said the company viewed Dublin as its default destination for a new hub inside the EU. </s> Bank of America has become the first Wall Street bank to pick Dublin to be its new base for its European Union operations as Britain prepares to leave the bloc, the firm said in a statement on Friday.

International banks are planning to set up subsidiaries in the EU to ensure they can continue to serve clients if their London operations lose the ability to operate in the bloc after Britain leaves in March 2019.

Details of banks' Brexit arrangements are starting to emerge following a July 14 deadline for them to submit details of their contingency plans to the Bank of England.

“Bank of America has operated in Ireland and engaged in the local community for almost 50 years,” said Brian Moynihan, Chairman and CEO of Bank of America.

The bank did not say how many roles would be moved or created in the Irish capital, where it currently has over 700 staff and a fully licensed entity, but said that some roles would also move to other EU locations.

The announcement follows news this week that Wall Street's Citigroup Inc. (C.N) and Morgan Stanley (MS.N) have picked Frankfrut as bases for the EU hubs post Brexit. </s> Bank of America yesterday confirmed it will become the first Wall Street lender to pick Dublin as its new base for its EU operations, as Britain prepares to leave the bloc.

International banks will set up subsidiaries in the EU so they can continue to serve clients, if their London operations lose the ability to operate across the bloc, once Britain leaves in March, 2019.

Frankfurt and Dublin are early winners for banks’ post-Brexit operations and Bank of America yesterday confirmed earlier speculation about its plans to expand in the Irish capital.

“Bank of America has operated in Ireland, and engaged in the local community, for almost 50 years,” said Brian Moynihan, chairman and chief executive of Bank of America.

The bank did not say how many roles would be moved to, or created in, Dublin, where it currently has over 700 staff and a fully-licensed entity, but said that some roles would also move to other EU locations.

“While we await further clarity around the Brexit negotiations, we are making all necessary preparations to serve our clients, however those discussions conclude,” Mr Moynihan said.

The Government, which has been keen to attract investment banks to Dublin, welcomed the news.

“This announcement… is a strong endorsement of Ireland’s attractiveness as a location for investment, and of the Government’s approach to securing Brexit-related activities,” Taoiseach Leo Varadkar said, following the announcement and a meeting with Mr Moynihan in Dublin yesterday.

Tánaiste Frances Fitzgerald said Bank of America’s decision marked “another vote of confidence in Ireland, and its expanding financial services sector, and shows that our track record, pro-business environment, highly skilled, talented workforce, and an unwavering commitment to the European single market continue to appeal to investors”.

Details of banks’ Brexit arrangements are emerging, following a July 14 deadline for them to submit details of their contingency plans to the Bank of England.

Wall Street’s Citigroup and Morgan Stanley have both picked Frankfurt as bases for their EU hubs, whilst Barclays has said it is talking with regulators about extending its activities in Dublin.

Morgan Stanley is likely to spread some of its operations across the EU, with its asset-management business expected to go to Dublin, as well. Bank of America is, reportedly, extending its existing lease on its building in Leopardstown. It has also been reported that the bank is in talks on two other office spaces in the city, which would accommodate up to 1,000 employees, giving it the flexibility to add 300 additional staff.

IDA Ireland chief executive, Martin Shanahan, said Bank of America’s expansion here reflects the importance of Ireland as a gateway to the European single market.

“As the only English speaking, common-law jurisdiction in the eurozone, Ireland is well-positioned to provide certainty to companies servicing the European market in a post-Brexit world.

"This is yet another very important signal to the market that financial services companies can come to Ireland and service their European customers with minimum disruption to their business.” </s> Bank of America announced Friday that it will move its hub for EU business to Dublin from London following Brexit.

The Irish capital will be "the preferred location for (the bank's) principal EU legal entities following the UK's departure from the EU," BofA said in a statement.

"Bank of America has operated in Ireland and engaged in the local community for almost 50 years," chief executive Brian Moynihan said.

BofA, the second biggest US bank by assets, did not specify the employment impact of the decision.

The bank currently employs about 700 people in Dublin and 4,500 in London, and is expected to transfer a small number of jobs from London to Dublin, a person familiar with the matter said.

BofA said it also will transfer functions out of London to other EU venues "with the focus on how we can best support our clients in these markets."

Earlier this week, Morgan Stanley and Citigroup, two other big US banks, signaled they would choose Frankfurt as a new hub following Brexit, which is expected to take effect in 2019.

Meanwhile, JPMorgan Chase has transferred hundreds of jobs to Dublin, but has not announced plans for a permanent headquarters for the EU. </s> LONDON — Bank of America said on Friday that it had chosen Dublin as its future European Union hub, the latest major financial services firm to outline its plans to deal with Britain’s departure from the 28-nation bloc.

Many banks and financial firms have concentrated their European operations in London, taking advantage of deep and liquid markets as well as the wide variety of support industries that have built up in the British capital, including accountants and lawyers. But those companies now face the distinct possibility that they may no longer be able to serve European clients from London after Britain leaves the bloc.

With Britain as a member of the bloc, companies based in the country have been able to sell financial products across the Continent under “passporting” rules, which allow a lender licensed in one member state to work throughout the European Union.

That is no longer guaranteed when Britain leaves in 2019, so financial companies have been moving forward with contingency strategies, and Bank of America is the latest lender to announce its plans. </s> The option is an extreme scenario under consideration by some Wall Street firms if the terms of an exit, currently a matter of speculation, leave financial services companies in Britain unable under their current set-ups to do business inside the EU, according to discussions Reuters had with several U.S. banks and their lawyers.

The scenarios being studied by taskforces at U.S. banks underscore the extent to which the London operations of non-European banks are linked to business on the continent.

In particular focus are the banks' market operations, as trading of most European securities is regulated at the EU level but conducted by many investment banks mainly out of London.

The five largest U.S. banks employ 40,000 people in London, more than in the rest of Europe combined, taking advantage of the EU "passporting" regime that allows them to offer services across the bloc out of their British hubs.

Having to reorganize business in order to set up new continental European outposts — which U.S. banks say is a worst-case scenario that they are being forced to consider — would be so costly that it would make some rethink their commitment to the bloc altogether.

"The costs may lead some banking groups to reassess how important Europe is in the context of their global business and what sort of presence they wish to maintain post-Brexit," said Edward Chan, a partner at the law firm Linklaters, which has been advising banks on contingency arrangements.

European integration has served U.S. investment banks well. The move to a single currency made it easier to take on the bloc's own banks, benefiting from economies of scale by trading in euros rather than competing with, say, Societe Generale for franc-denominated business or with Deutsche Bank in deutschmarks.

The big five U.S. banks have all been gaining market share while European investment banks restructure. In the first quarter, JPMorgan, Goldman Sachs and Morgan Stanley took the top three positions for investment banking fees in Europe, Middle East and Africa (EMEA), according to Thomson Reuters data.

But it is outside the euro zone, in the City of London, that they base their EU businesses. The investment bankers heading up M&A advisory teams for the likes of Italy and France all tend to live in London rather than Rome or Paris.

Of the just under 6,500 staff who handle Goldman Sachs International's broker-dealer services for all of EMEA, a region that brings in around 35 percent of group revenue, fewer than 1,000 are based outside Britain.

These UK outposts have increased in importance since the 2008 global financial crisis, when banks tried to simplify their international structures into a few main hubs.

The major U.S. banks also use their London entities to help them avoid the brunt of new U.S. trading rules brought in with the Dodd-Frank regulation, booking swap trade agreements with non-U.S. counterparties in Britain rather than in America.

Now, the prospect of an exit from the European Union has spurred these banks into action, albeit only on paper for now.

Four Wall Street banks told Reuters how, with the outcome of the vote and its consequences wide open, they have been drawing up contingency plans as part of their own risk planning and at regulators' behest.

One bank said it had a central taskforce of 20 people drawn from each business unit and functions such as human resources and information technology.

The alert level has not reached that of the Greek debt crisis, when a similar committee would sit every two or three days, but the group does meet weekly.

If Britain were to remain a member of the European Economic Area (EEA), which gives Norway, Iceland and Liechtenstein access to the EU's single market, its financial companies would retain passporting rights for EU countries, although Britain would have no say in the formulation of EU rules.

But if Britain quit the EEA, UK-based firms wanting to operate in the EU would face an "equivalence" test to prove to Brussels that their home rules are as strict as those in the EU.

They would also probably need a locally capitalized subsidiary in the EU, more expensive than running a branch.

Leading Brexit campaigner Boris Johnson has said Britain could create a "Britzerland", based on Switzerland's bilateral treaties with Brussels.

However, Swiss financial institutions do not enjoy passporting rights within the EU, and Swiss investment banks, like their American peers, base most of their EU operations in London.

The bank with the 20-strong taskforce currently has no established entity in mainland Europe to conduct capital markets business from.

An executive said it would have to consider whether it was worth the trouble of creating a parallel broker-dealer operation within the euro zone with billions of dollars in capital.

Other U.S. banks say the region is too important to turn their back on, but that a messy post-Brexit agreement would require a major reorganization.

JP Morgan Securities Plc, the London subsidiary that houses most of the bank's capital markets business in EMEA, says its analysis shows that, under some scenarios, its UK-based subsidiaries "might not be able to perform new business with European Union-based clients directly". To keep that business, it would have to change its legal entity structure and its booking model.

JP Morgan International Bank Plc, which looks after the group's private banking clients in EMEA, said it might be required to "transfer existing and new business with continental European clients into a European Economic Area affiliate".

Chan, the Linklaters lawyer, said a reorganization like the one JP Morgan is hypothesizing could costs millions:

"New regulated entities will need to be licensed, capitalized and funded. People will need to be moved, real estate will need to be found, IT and other systems will need to be procured, and not every location will have the right infrastructure."

Some banks hope they could move just a few staff to smaller, existing units they already have in the euro zone, and obtain new licenses.

JPMorgan, for example, has a smaller banking entity in Frankfurt and a unit housing asset management business in Luxembourg.

Citigroup has said it might have to reallocate certain businesses back into the EU, but would not "hot foot" it out of Britain.

It does have a large banking subsidiary in Dublin, but that could not accommodate its broking or trading businesses in the region, which under U.S. regulation have to be housed in entities separate from deposit-taking operations.

There are, in any case, concerns that EU regulators would be reluctant to let banks keep the bulk of their staff in London. Officials at the European Central Bank have already indicated they would want euro-denominated trading - most of which happens in London - to move inside the euro zone in the event of a Brexit.

Despite the growing nervousness, the U.S. banks say they have not yet made any firm investments in alternative outposts or property in the euro zone, preferring to wait for the vote.

Real estate agents in Frankfurt and Paris say there has been no rise in demand from banks, with prime rents in the City of London up 7.7 percent year-on-year in the first quarter, compared with 1.3 percent growth in Frankfurt and zero in Paris.

"Banks are doing a lot of internal planning for various different business streams, but they need to balance this against the fact that the cost and effort could be unnecessary if there is a 'Remain' vote - and also, if there is a 'Leave' vote, we do not know what the future regime will look like," said Michael Thomas, partner at the international law firm Hogan Lovells.

"We get questions from clients, but people are generally waiting to see which way the vote goes before lighting up budgets."
Bank of America chooses Dublin as its European hub.