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US investment banks to offer boost to post-Brexit London

US investment post-Brexit

​Fears surrounding London's position as a top global financial centre in post-Brexit Britain could soon be eased, with five US investment banks reportedly telling chancellor George Osborne that they intend to offer their support.

JPMorgan, Goldman Sachs, Bank of America Merrill Lynch and Morgan Stanley, as well as Britain's Asia-focused Standard Chartered have all offered their support, although there is still no guarantee over safeguarding jobs.

One banker to meet with Osborne reportedly told Reuters that banks will need concrete assurances that firms based in London will manage to retain access to EU markets as it would otherwise be difficult for to justify investing in Britain.

But in a joint statement released by bankers and Osborne, all parties agreed to work towards finding a solution that best served everyone.

"Today we met and agreed that we would work together ... with a common aim to help London retain its position as the leading international financial centre," the statement read.

It continued by stating that London enjoyed a status of being ahead of every other city in Europe in terms of the depth of capital markets available, but the draw of Britain's still runs alongside a sense of uncertainty.

One area that is of particular concern for the banking industry is what will happen to the various EU staff currently working in the city, urging a pragmatic approach to ensure the UK still has access to the EU single market once it completes its exit from the EU.

Given that any trade deal is unlikely to be completed quickly, there are already fears among many city workers that other countries may well steal a march.

The French government has already pledged this week to make its tax regime for expatriates the most favourable in Europe in a bid to divert investment, while Goldman Sachs and Morgan Stanley have both been forced to deny plans to move London operations to Frankfurt.

Despite those denials, easing fears over the UK's financial might is likely to be a top priority for Osborne, who has for years attempted to try and expand London's reach to China and India.

Now, having been part of the government's failed Remain campaign, the chancellor faces the task of easing any fears being harboured by potential investors while also convincing them that the UK is still a viable place in which to do business.

Domestic banks have also required reassuring having seen share prices tumble since the Brexit vote, with Osborne meeting with representatives earlier in the week in a bid to ensure they make more funds available for UK lending after the Bank of England eased capital rules.