Britain's loss to be Luxembourg's gain?
HSBC Holdings Plc (HSBA.L) and JPMorgan Chase & Co (JPM.N) could expand their presence in Luxembourg if the Britain were to leave Europe.
According to British newspaper The Times, the two firms are in talks over a potential move of operations from the UK. JPMorgan, it reports, is in the process of creating a Luxembourg-based bank to handle clearance of Eurozone transactions.
This would enable the US bank to transfer business out of the UK if Britain were to leave the European Union.
The Times cited a source, saying any move would not lead to large numbers of jobs moving to Luxembourg. It said that JPMorgan's headquarters would remain in London.
Meanwhile, it was reported HSBC unveiled its domicile review in April, which could see headquarters moved from London to Luxembourg.
Shareholders, however, are pushing for HSBC to move headquarters to Asia to avoid paying costs such as UK bank tax.
While neither HSBC nor JPMorgan commented on the matter, a research note published by JPMorgan suggested that leaving the UK could hurt business sentiment and upset investor confidence.
Do not miss the news - sign up to receive thewort.lu newsletter in Englishdelivered to your inbox six days a week.