JP Morgan threatens to leave U.K. over bank tax
The sign for JPMorgan on a mirror in the headquarters of JPMorgan Chase in London.
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Steve Chiotakis: JP Morgan Chase is reportedly threatening to withdraw from the U.K. According to some reports out today, the investment bank says it could abandon its business in London -- furious, apparently, about new British taxes targeting investment banks. Marketplace's Stephen Beard reports.
Stephen Beard: JP Morgan is reportedly on the brink of scrapping plans for a new $2 billion headquarters in London. Press reports say the bank is alarmed by the level of banker bashing in Britain, and that it's concerned about a string of new taxes -- especially those tragetting banks and bankers' pay.
No one at JP Morgan was available to comment, but Stewart Frazer, an official representative of London's financial center, says he's taking the threat seriously:
Steve Chiotakis: I think you can certainly take it there's a shot across the bows. We need to be aware when we impose any form of tax, or change of tax, that London sits in a global competitive position.
He points out that planned bank taxes in the U.S and continental Europe have either been scrapped or postponed.
In London, this is Stephen Beard for Marketplace.