EU in Brexit revenge plot as ECB bids to clamp down on banks serving clients from UK

The European Central Bank has been trying to crack down on banks serving EU clients from the UK in the wake of Brexit. The practice is known as “back-to-back” trading.

Banks could face fresh pressure to move staff from Britain to the bloc as the ECB’s desk-mapping exercise enters its final phase in the coming weeks.

The ECB has been assessing the EU arms of US banking giants including JP Morgan and Goldman Sachs.

Insiders told the Telegraph that JP Morgan and Goldman Sachs have already increased their EU workforce by 1,800 due to Brexit.

The increase was a combination of relocating London bankers and new hires.

Meanwhile, the Bank of America Merrill Lynch has added 500 roles on the continent.

And Morgan Stanley has bumped up EU staff by 300.

It comes as the ECB has been looking to tackle the “back-to-back” trading practice of banks serving EU clients while keeping staff and capital in the UK.

Next month the ECB enters the final stage of its desk-mapping review.

READ MORE: French economist admits Brexit ‘not catastrophe as predicted’

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