Goldman boss: 'Brexit hit not as bad as I thought'

Lloyd Blankfein said that while Brexit so far hasn't had as bad an impact as feared, it will impact decisions later down the line. Photo/Telegraph.

Goldman Sachs' boss has admitted to making a mistake about the immediate hit Brexit would have on the UK economy, adding that he was surprised there hasn't "been a more dramatic effect" since the result in June 2016.

Lloyd Blankfein, who has hinted in the past that the City could lose out to rival EU cities in the wake of the vote, said: "I'm at least wrong in the fact I thought there would have been a worse outcome by now."

He has taken a series of potshots at Brexit, last year tweeting to his 90,000 followers: "Just left Frankfurt. Great meetings, great weather, really enjoyed it. Good, because I'll be spending a lot more time there.

The bank recently signed a new lease in Frankfurt that gives it capacity to seat up to 1,000 staff in the German city. Its new, larger London office is due to open next year.

Speaking to Politico, he said that the Wall Street banking giant might not have chosen to build the £1billion (NZ$1.93 billion) EU hub in London had it known about Brexit.

Mr Blankfein said while its EU headquarters would remain in London "we might have made a different decision a few years ago" had they known the UK was going to leave.

He warned that just because the US bank is still building the 6,000-person office as planned before the vote does not mean the fallout will not be felt in the City later down the line.

"There are decisions that are going to be made today that will be different," he said. "People who might be building buildings four years from now won't be."

- The Telegraph