Morgan Stanley Chairman and CEO James Gorman said he expects his company to move about 400 to 500 employees out of the U.K. because of Brexit.
Morgan Stanley has about 5,000 employees in the country, Gorman said June 12 during an investor conference presentation.
Morgan Stanley's Brexit plan is to have a multicenter approach with Frankfurt as the base. Gorman said Germany was a logical choice because Morgan Stanley previously had a legal entity, senior leadership and a board in the country.
"And I think the German regulators are obviously used to dealing with large trading businesses," Gorman said.
He noted that the investment management business is moving to Ireland and much of that move is completed. Some sales and trading personnel will move to Paris and Milan, Italy, Gorman said.
The changes add expense and are a "net negative," Gorman said. "There's nothing particularly good about Brexit," he said.
Still, Gorman said the transition period looks "reasonably good," and some of the worst fears around Brexit are not materializing.
"It hasn't been quite as earth-shattering as maybe everybody thought a few years ago," he said.
