MORGAN STANLEY CEO ON BREXIT: We’ll have to open a new European headquarters

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Morgan Stanley chairman and CEO James Gorman.
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Thomson Reuters

Morgan Stanley CEO James Gorman on Wednesday suggested that his firm would have to launch a new headquarters in Europe.

Speaking with CNBC’s David Faber 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 in one of the major markets, whether it’s Frankfurt or one of the other cities there,” Gorman said.

He said the firm would have to move some people there but emphasized that the UK would remain an important part of the firm’s global presence.

The CEO also said he met with government figures in the UK and thought the full impact of the decision would 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 that it had begun moving 2,000 investment banking employees out of London in the immediate aftermath of the Brexit vote after the BBC reported that the firm started the relocation process.

Morgan Stanley on Wednesday reported second-quarter earnings that beat expectations on the top and bottom lines.