Shhh, we have a plan. Never let it be said that the UK government doesn’t know what it’s doing when it comes to Brexit. Or, if you’re thinking that they need a little advice to help avoid the UK falling off a cliff, don’t let it find out your views.
Deloitte has now implemented self-imposed six-month ban from lucrative government consulting work after its leaked memo about Westminster’s Brexit headaches. If it’s locked out of key Brexit negotiation work, Deloitte has just lost a lot money. Management consultants were being hired on rates of £1,000 ($1,235) a day to assist the government on Brexit and the final bill is expected to reach £5bn over the next decade.
“Over the next few months, the main departments tackling Brexit — the Department for Exiting the EU, the Department for International Trade and the Treasury — will tender for advice on a wide range of policies, such as leaving the customs union, management of UK borders and reform of the Prison Service. What Deloitte will lose here could be major,” a consulting competitor told the Financial Times.
Right now, however, the Big Four consulting firms are also advising large financial services organisation on what, exactly, they’re going to do with their UK operations if they’re forced to move functions to the EU after Brexit.
KPMG’s global chairman John Veihmeyer remains relatively relaxed about the whole scenario. Companies are “wanting to wait” before making any decisions about actually moving staff, whatever the recent posturing might suggest, he says.
“I wouldn’t say we are seeing a lot of companies that are aggressively and actively moving in that direction [relocating staff, units, or setting up subsidiaries] but companies that are sensitive to sector investment flows [due to the Single Market access and passporting], like financial services, are working on contingency plans,” he told Business Insider.
Maybe so, but Citi and UBS have already said that they’re seriously contemplating moving London jobs to Frankfurt.
Separately, Donald Trump has continued his gathering of billionaires by appointing Carl Icahn as ‘special adviser’. If the job title sounds a little vague, it’s likely that Icahn will have a lot of influence on employment prospects on Wall Street. For a start, he’s will influence the appointment of the new SEC president. Then, he’s advising on just how much regulation Trump should tear up to create a more business friendly environment. His interview with the WSJ suggests he’s not likely to hold back.
“What Trump is trying to achieve is to show business in a lot of this country they aren’t going to be ruined by absurd regulation by bureaucrats,” he said.
Credit Suisse has just promoted 180 people to managing director (Financial News)
“People want to change the world, and your banker can help you, but your banker’s not coming up with the next autonomous-driving software — so it’s a slightly different vibe.” (Business Insider)
Goldman Sachs has been slapped with a $120m after claims its traders tried to rig the Isdafix benchmark (Financial Times)
J.P. Morgan, Deutsche Bank, Barclays, Credit Suisse, SocGen and RBS have been fined $96.3m by Swiss regulators for rigging the Swiss bank Libor (WSJ)
Credit Suisse has turned its attentions to cutting jobs in Switzerland (Bloomberg)
Newton Investment Management has moved its head of distribution Julian Lyne from London to New York (Financial News)
“People say ‘if you pay peanuts, you get monkeys’. Our study doesn’t show that you can pay peanuts, but it does show that you won’t get the best chief executives by overpaying them.” (Financial Times)
Former BlackRock senior portfolio manager Mark Lyttleton has been charged with insider trading (Financial News)
Party animal turned investment banker returns to partying (Real Business)