JP Morgan combines European business at the Frankfurt location

FRANKFURT (Reuters) – The American banking giant JP Morgan is consolidating most of its European business into a legal entity based in Frankfurt.

With this step, the US financial group wants to simplify its business structure in the European Union after Brexit. The newly created subsidiary is one of the five largest banks in Germany and one of the 20 most important institutions in the EU and is directly supervised by the European Central Bank (ECB), said JP Morgan on Monday. The capital base of the institute is around 34 billion euros.

As part of the merger process, the Luxembourg and Irish units were initially bundled in the German business unit JP Morgan AG. In addition, JP Morgan AG was legally converted into a European stock corporation – a “Societas Europaea” (SE). The legal realignment does not involve any changes to the bank’s existing locations. The structure of the US bank in the UK, which includes the entities JP Morgan Securities plc. and JP Morgan Europe Ltd are also not changed by the steps.

After the UK left the EU, many major US banks reorganized their operations in Europe. Because of the Brexit, they can no longer look after their customers in the EU from the British financial metropolis of London as before.

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