The chief executive of Deutsche Bank has revealed it is preparing for a Brexit outcome that is "worse than people can imagine".
In a video message to the staff, John Cryan admitted in the future the lender will probably book the majority of its trades in Frankfurt, where it has its headquarters.
"There's an awful lot of detail to be ironed out and agreed; depending on what the rules and regulations turn out to be, we will try to minimise disruption for our clients and for our own people," Cryan said in the message, which was delivered last week but only emerged on Thursday (20 July).
"But inevitably roles will need to be either moved or at least added in Frankfurt.
"We will assume a reasonable worst outcome. The worst is always likely to be worse than people can imagine."
In April, the lender, which currently employs 7,000 workers in London and an additional 2,000 elsewhere around the UK, warned Brexit could force it to move around 4,000 jobs from the UK to EU member countries.
Meanwhile, US banking giant Citigroup has allegedly told staff it intends to create 150 new roles in Frankfurt and elsewhere in the EU to deal with the Brexit aftermath.
On Wednesday (19 July), it emerged Morgan Stanley had picked Frankfurt to be the hub of its European operation after Britain leaves the EU.
According to the reports, Morgan Stanley, which currently has most of its European staff in the UK, where it employs around 6,000 people, could move as much as 1,000 employees to Frankfurt.
In January, a source close to the bank said Morgan Stanley could most likely move these jobs to Frankfurt as it already has a trading licence there.
Among Brexit's numerous implications, the UK will also leave the single market. That means lenders will not retain access to the European banking passport system, which allows banks and other financial institutions authorised to operate in an EU country, or a state member of the European Economic Area (EEA), to conduct business across the union.