Morgan Stanley CEO James Gorman says his firm will have to launch a new headquarters in Europe.
Speaking to CNBC’s David Faber Wednesday about the UK’s decision to leave the European Union, Gorman said he recently cut a trip to Germany short to spend time with his employees in London.
“Clearly we and other banks will have to have a European-style headquarters,” Gorman said, whether they be in Germany or elsewhere.
He said they will have to move some people there, but emphasised that the UK will remain an important part of the firm’s global presence.
The chief executive also said he met with government figures in the UK and believes the full impacts of the decision will unfold over the next five to 10 years.
For now his message to UK employees is simple: “Cool your jets, just settle down,” Gorman said.
Morgan Stanley was forced to deny it had begun moving 2,000 investment banking staff out of London in the immediate aftermath of the Brexit vote, after the BBC reported that it started the relocation process.
Morgan Stanley on Wednesday reported second-quarter earnings that beat expectations on the top and bottom lines.