Morgan Stanley chief exec says the bank may have to move staff to the continent following Brexit vote

 
Hayley Kirton
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The bank has previously denied a story claiming it was in the process of moving 2,000 jobs overseas (Source: Getty)

Morgan Stanley's chief exec has said the bank will relocate some of its UK staff following the Brexit vote.

James Gorman said today the UK's decision to depart from the EU likely meant the bank would need to set up a headquarters in continental Europe, which would mean some jobs would be shifted.

However, Gorman stressed the UK would remain a critical country for the firm's strategy. He added he had already reassured staff who were concerned their job was imminently up for the chop, including cutting short a trip to Germany so he could spend time in London.

His current message to UK staff, he said in an interview with CNBC following the bank's quarterly results, was to "cool your jets, just settle down".

Read more: US bank earnings round two: What will this week have in store?

Gorman also noted he had spent some time meeting with government figures in the UK to discuss the impact of the vote's result.

The day the referendum result was announced, Morgan Stanley denied a BBC story which claimed the bank already had plans underway to move 2,000 investment banking jobs from London to either Dublin or Frankfurt.

However, Gorman today did not place a figure on the number of staff he envisioned moving and gave no indication the wheels were currently in motion.

Many in the UK's banking sector have feared the decision to leave the EU could cause many jobs to be shipped overseas, especially if the UK fails to secure favourable passporting rights as part of its exit negotiations.

Back in February, HSBC indicated it may move around 1,000 staff to Paris depending on what kind deal the UK secured for Brexit.

Read more: Investment banks pledge to work with Osborne to boost post-Brexit London

Meanwhile, JP Morgan boss Jamie Dimon warned at the start of June: "If the UK leaves the EU, we may have no choice but to reorganise our business model here. Brexit could mean fewer JP Morgan jobs in the UK and more jobs in Europe."

Earlier today, Morgan Stanley reported a fall in both profits and revenues for its most recent quarter, although the results beat expectations.

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