How Paris could profit from Brexit

Thousands of banking jobs could move out of London in the next year, with HSBC reportedly already planning to shift 1,000 positions to France.

Although Frankfurt remains a favourite possible destination for European banking services, Mr Sapin said the capital must be in a position to 'profit' from any relocation of financial services from London. “Paris needs to strengthen its position. It has the capacity,” he said.

And he referred to outgoing Prime Minister David Cameron's 2012 promise to 'roll out the red carpet' to rich French businesspeople seeking to escape higher taxes.

“I found it very disagreeable when the Prime Minister said he would roll out the red carpet for those who wanted to flee France for the UK fearing high taxes,” Mr Sapin said. “I am more 'fair play'. But ... the red carpet remains in place - and it works it both directions.”

Mr Sapin said 'financial passports' which allow banks to operate anywhere in the EU as long as they have a licence from one member country should be revoked after a Brexit as a 'necessary and binding consequence'.

Forfeiting the passport would mean banks based in London could not directly access financial markets in the European Union.

“What is the strength of London’s position? It is that being in London means you are in Europe,” he said.
François Villeroy de Galhau, governor of the Bank of France, agreed. He said: "It would be a bit paradoxical to leave the EU and apply all EU rules, but that is the solution if Britain wants to keep access to the single market.

"The City cannot keep this European passport and clearing houses cannot be located in London either."

Morgan Stanley, BNP Paribas and JPMorgan are among the other financial big names reportedly looking to scale back their UK-based operations. American banks with large London operations said they were 'rebalancing' following the result.