City Of London
Goldman Sachs, JPMorgan Among Winners From UK Finance Reforms
- Raising ring-fence threshold would benefit Wall Street firms
- EU-era short-selling rules to be reviewed in boost for London
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Goldman Sachs Group Inc. and JPMorgan Chase & Co. are likely to be among the beneficiaries of the government’s financial services reforms through a proposed relaxation of ring-fencing capital rules that will boost their UK savings arms.
The government said it intends to consult next year on the possibility of increasing the threshold above which lenders must ring-fence their retail operations to £35 billion ($43 billion), up £10 billion. A review by businessman Keith Skeoch earlier this year didn’t recommend raising the threshold, but the government said that it would consider it as the total amount of sterling deposits has grown since the level was set in 2015.