Goldman Sachs and JP Morgan have increased their EU workforce by almost 2,000 people since Brexit as Brussels steps up its review of bank hubs on the continent.   

Banks that do not have enough decision-makers in the bloc could face fresh demands over the coming weeks as the European Central Bank (ECB) enters the final phase of its so-called desk-mapping exercise, sources said.

Bankers rolling out Brexit plans insisted that only the “bad apples cutting corners” will face action for relying too much on their London divisions, although one bank executive said “it’s always possible” Brussels could ask for more staff or capital to relocate out of the UK. “You can never say it’s over,” he added. 

The ECB has been assessing where staff sit and book trades at the EU arms of US banking giants such as JP Morgan and Goldman Sachs, as well as who is in these hubs, amid fears risks relating to EU clients could slip from its oversight.  

Insiders said Goldman and JP Morgan have together increased their EU workforce by 1,800 people as a result of Brexit, either by relocating London bankers or hiring staff on the ground. 

US rivals Morgan Stanley and Bank of America Merrill Lynch have added a respective 300 and 500 roles on the continent through relocations and new hires. 

JP Morgan, America’s largest bank, told MPs in 2018 that up to a quarter of its 16,000 UK staff could ultimately relocate to the continent due to Brexit.

However not everyone has proved willing to move. Sources told Bloomberg last year that when JP Morgan tried to move 15 London traders to Paris, about half resigned. 

The ECB has been trying to crack down on a practice known as “back-to-back” trading, where banks serve EU clients while keeping senior staff and capital in the UK. 

Banks found to be relying too much on their London operations or accused of setting up shell hubs are set to come under fire next month as the ECB enters the final stage of its desk-mapping review, the follow-up phase.

City bankers said conversations with EU officials have been civil, although there are fears another wave of moves could come as the coronavirus pandemic loses its validity as an excuse to delay Brexit plans. 

The ECB declined to comment.