London (Parliament Politics Magazine) – Goldman Sachs CEO David Solomon warns Brexit is hurting London’s financial image, with talent moving to EU hubs like Paris and Frankfurt.
As reported by The Independent, Goldman Sachs chief David Solomon described London’s financial standing as “fragile” after Brexit, highlighting ongoing threats to its global position.
What did David Solomon say about London’s shrinking role in finance?
David Solomon said the bank is relocating staff from London to competing financial centres including Paris, Frankfurt, and Munich.
He said,
“The financial industry is still driven by talent and capital formation, and those things are much more mobile than they were 25 years ago.”
Mr Solomon stated,
“London continues to be an important financial centre. But because of Brexit, because of the way the world’s evolving, the talent that was more centred here is more mobile. We as a firm have many more people on the continent.”
The bank’s CEO outlined Goldman Sachs’ strategic shift from London, highlighting increased focus on European financial centres.
He said,
“If you go back, you know, ten years ago, I think we probably had 80 people in Paris. You know, we have 400 people in Paris now… And so in Goldman Sachs today, if you’re in Europe, you can live in London, you can live in Paris, you can live in Germany, in Frankfurt or Munich, you can live in Italy, you can live in Switzerland,”
adding,
“And we’ve got, you know, real offices. You just have to recognise that talent is more mobile.”
The bank’s chief said,
“If you don’t set a policy that keeps talent here, that encourages capital formation here, I think over time you risk that. Incentives matter if you create tax policy or incentives that push people away, you harm your economy.”
Mr Solomon added,
“And now we have to see the action steps that actually follow through and encourage that.”
Seema Malhotra’s views on doing business in the UK
Seema Malhotra, a Home Office minister, slammed former PM Liz Truss for harming the UK’s reputation as a destination for business.
She said,
“There’s been a sense of urgency coming out of the Treasury since we came into government last year, and that is because we saw the damage over 14 years, but most recently, since the Liz truss premiership, the damage that was done to our economy, to our reputation around the world, to the confidence of investors.”
Ms Malhotra added,
“And what I’ve seen while we’ve been in government… is a government that is extremely and completely focused on how we rebuild our economy, but also how we work with our City of London, with our financial services, because this is a jewel in the crown for the UK. And I believe that with the chancellor and with our government working in partnership, once again, with British industry, that we will see that confidence restored.”
Henley’s CEO’s views on the UK’s wealth exodus
Dr Juerg Steffen, CEO at Henley & Partners, stated,
“2025 marks a pivotal moment. For the first time in a decade of tracking, a European country leads the world in millionaire outflows.”
He added,
“This isn’t just about changes to the tax regime. It reflects a deepening perception among the wealthy that greater opportunity, freedom, and stability lie elsewhere. The long-term implications for Europe and the UK’s economic competitiveness and investment appeal are significant.”
Britain will lose 16,500 millionaires in 2025. Henley & Partners’ Wealth Migration Report reveals around 142,000 wealthy individuals will relocate globally this year.
Key facts about Goldman Sachs
Founded: Goldman Sachs began in 1869 in NYC by Marcus Goldman.
NYSE: Joined the stock exchange in 1896.
Global: Operates in 30+ countries with 45,900 employees.
HQ: Based in New York, with offices in London, Hong Kong, and Tokyo.
Finance: Revenue $54.8B (2024-25), manages $1.7T assets, market cap $215B.