How Will JPMorgan (JPM) Stock Be Affected if Dimon Moves ‘Thousands of Employees' From U.K.?
NEW YORK (TheStreet) -- JPMorgan Chase (JPM) - Get Report CEO Jamie Dimon said today that he may consider moving jobs out of the U.K. if the Brexit vote begins to hurt banks significantly.
The New York-based bank makes $8 billion in annual income in the U.K. and provides about 16,000 jobs there, and Dimon would consider shifting between 1,000 and 4,000 positions.
With the changes to come after Brexit, Dimon is concerned that the U.K. could no longer make use of the European Union's "passporting rule." This currently allows companies with operations in the U.K. to sell services to the rest of the countries in the EU.
Dimon said if JPMorgan is allowed that same passport after Brexit, no changes will be made.
However, he believes "the European Union will not accept that." He said to Italian newspaper Il Sole-24 Ore that the EU might "put more conditions on the U.K. and might force banks to become smaller in London."
JP Morgan stock closed up 1.07% to $60.19 on Wednesday.
Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of A-.
The company's strengths can be seen in multiple areas, such as its expanding profit margins and attractive valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: JPM
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.