👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Goldman Sachs eyes tilt to EU if UK backs 'Brexit': paper

Published 06/27/2015, 01:09 PM
Updated 06/27/2015, 01:14 PM
© Reuters. The Goldman Sachs logo is displayed on a post above the floor of the New York Stock Exchange
GS
-

FRANKFURT (Reuters) - Goldman Sachs (N:GS) would shift resources toward locations in continental Europe and away from Britain should the country's voters choose to end the country's membership of the EU, a senior executive told the Frankfurter Allgemeine Sonntagszeitung.

"We would not completely leave Britain but we would certainly strengthen our presence in other locations within the EU," Richard Gnodde, co-chief executive officer of Goldman Sachs International and co-head of the Investment Banking Division was quoted as saying in an interview.

British Prime Minister David Cameron, who won an unexpectedly decisive victory in a general election last month, has promised to renegotiate Britain's membership of the EU and hold a referendum on membership by the end of 2017.

Some investors, chief executives and allies have warned that a "Brexit," or vote not to stay in the bloc, would be politically and economically costly for Britain, whose economy is the world's fifth largest.

Gnodde said it was in everyone's interest - and particularly the UK's - that the country stay in the Union.

"Britain must remain part of a larger economic bloc. Anything else would damage the broader economy as well as the financial sector," he said in an excerpt of the interview released on Saturday, ahead of publication on Sunday.

However, should the vote unexpectedly turn against the EU, Frankfurt - home of the European Central Bank - could benefit.

© Reuters. The Goldman Sachs logo is displayed on a post above the floor of the New York Stock Exchange

"I'm not revealing any secret when I say that in the unlikely event of a Brexit we would certainly put more resources into Frankfurt," Gnodde said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.