Morgan Stanley named Martin Luehrs as head of Global Capital Markets at Morgan Stanley Europe SE, the Frankfurt-based subsidiary, a new role created as part of the bank’s strategy to grow in continental Europe in the wake of the U.K.’s departure from the EU.
Luehrs was based in London, where he was co-head of EMEA Leveraged Capital Markets until January, when he took over on the new role. A spokesman for the lender confirmed the appointment.
The bank had already moved people from London to various EU locations including Madrid and Milan, and it started a trading venue in Paris in 2018. The bank plans to move about 100 billion euros ($120 billion) of assets to Frankfurt, most of which were expected to be transfered in the first quarter of this year, Bloomberg reported in December.
Other banks including JPMorgan Chase & Co. and Goldman Sachs Group Inc. have relocated staff and assets to the EU after the U.K. voted to leave the bloc. London and Brussels have failed to reach a deal regarding financial services by the end of the Brexit transition period.
International banks have agreed to shift a total of about 1.2 trillion euros of assets to European units, the chair of the European Central Bank’s oversight arm, Andrea Enrica, said earlier this month.
Without equivalence with the EU, U.K.-based banks need to sell securities to European clients from an European office. That would impact a range of assets from equities to bonds and collateralized debt obligations.
— With assistance by Sarah Husband