Morgan Stanley has picked Frankfurt as a new temporary hub to operate in the European Union when Brexit takes effect, a person familiar with the situation said.
The New York investment bank will double staff in the German city from 200 to 400 in order to be ready to continue to operate in Europe by the March 2019 deadline for Brexit to take effect, the person said on Wednesday.
“It’s a short-term solution,” the person said, adding that Morgan Stanley executives continued to consider other cities for its long-term headquarters.
Morgan Stanley currently employs about 5,000 people in London but will relocate some traders as well as marketing and administrative staff to Frankfurt.
The bank also plans to shift a smaller number of banking and trader jobs to Paris, Dublin, Madrid and Milan, the person said.
Morgan Stanley plans to later take a decision on the permanent headquarters for the EU operations. French President Emmanuel Macron, among other European leaders, has been actively trying to lure bankers to Paris for the post-Brexit era.
Frankfurt has already been picked as the EU headquarters by Standard Chartered and Nomura.
JPMorgan Chase has transferred hundreds of jobs to Dublin but has not announced plans for a permanent headquarters for the EU.