Power outage in Germany shocks JP Morgan: US banking giant draws up plan to move work from Frankfurt to London
JP Morgan could move work from its German offices to London as Europe’s biggest economy braces for power outages.
The US banking giant has drawn up plans in the event of a “perfect storm” that would cause power outages in Germany this winter.
One option would be to move work from the Frankfurt base to London and other European offices when power outages threaten operations.
Blackout fear: US banking giant JP Morgan has drawn up plans in the event of a “perfect storm” that would cause power outages in Germany this winter
Such a move would raise eyebrows given JP Morgan boss Jamie Dimon’s repeated warnings about Brexit.
JP Morgan has moved billions of dollars in assets from London to Frankfurt as part of the vote to leave the EU.
But the Wall Street titan has now fleshed out the plans amid an energy crisis in Europe following Russia’s invasion of Ukraine.
Kremlin-controlled Gazprom has shut down the Nord Stream 1 gas pipeline from Russia to Germany, throwing European gas markets into chaos, driving up prices and fearing shortages.
Russian President Vladimir Putin said supplies would only resume if sanctions over his invasion of Ukraine were lifted.
Plans to move work from the Frankfurt base to London and other European offices when Germany is hit by power outages are among a number of options.
Warnings: JP Morgan’s US boss Jamie Dimon
Others include using diesel generators in the offices that would run them for days without electricity, or directing employees to work from home to reduce energy use.
A source told The Daily Telegraph: “Work transfers can also be to and from anywhere, not just the UK.
‘It would take a perfect storm of a complete shutdown of Russia’s gas supply, no reduction in gas consumption at all and little alternative gas sourcing before it would have any real impact on our business.’
The plans are being made as a precautionary measure and it is assumed that there is no intention to activate them.
Nord Stream 1, which runs under the Baltic Sea to Germany, is by far the largest Russian gas pipeline to Europe, transporting up to 59.2 billion cubic meters of gas annually.
Once seen as a symbol of cooperation between one of the world’s largest energy powerhouses and the world’s fourth-largest economy, Nord Stream has become the subject of accusations between Berlin and Moscow.
