THOUSANDS of bank staff in Bournemouth face an anxious wait after reports that JP Morgan is considering its UK future.

The Chaseside global banking giant is Dorset’s biggest private sector employer and the bedrock of the local financial services industry.

But according to national newspaper reports, the firm is considering moving its back office functions from the UK as part of a radical overhaul of its European operations.

It is believed that one of the triggers for the review is the government’s plan for a £2.5bn banking levy which is set to come in next year.

A JP Morgan spokesman declined to comment on the speculation but the company is apparently concerned over what it sees as a lack of support for financial services in this country.

Around 5,000 staff work at the Chaseside complex.

Charlie Wilkinson, head of executive education in the Business School at Bournemouth University said: “Potentially it could have a huge impact on the local area. It would have significant implications on the health of local housing. JP Morgan must contribute around £200m to the local economy.”

But he added: “They do have significant operations in India, employing some 20,000 people in Mumbai and some of the work done in Bournemouth could easily be transferred abroad.”

Overall he felt that “it is unlikely they would close the entire Bournemouth site”.

Kathy Tilbury, president of Dorset Chamber believes that if JP Morgan left Bournemouth it would be a “disaster” for the town and have a negative impact on the Dorset economy because the firm contributes millions of pounds to the region.

However, she understood why the bank might be considering its options.

“JP Morgan’s decision to review its UK operation is not surprising in the current economic climate and with the pressure the coalition government is putting on banks as well as the emerging opportunities in the tiger economies,” she said.

Cllr Peter Charon, who was elected as leader of Bournemouth Council last night, said: “We have had no indication of any particular changes with regard to JP Morgan. We are aware of discussions in Canary Wharf. Naturally we will monitor the situation very carefully and liaise with JP Morgan.”

The bank, which is also reviewing the future of its Glasgow office, is believed to be having second thoughts about investing £1.5bn in building a new European headquarters at Canary Wharf, London.

When Chase Manhattan Bank opened the Chaseside office in 1986, it invested £30m.

FACTFILE

JP Morgan owes its name to John Pierpont Morgan (1837 to 1913), an American financier, banker and art collector.

Between 1864 and 1872, Mr Morgan was a member of Dabney, Morgan & Company and in 1871, he partnered with the Drexels of Philadelphia to form the New York firm of Drexel, Morgan & Company.

In 1895 it was renamed JP Morgan & Company.

In the early 1900s Mr Morgan established Chase Manhattan Bank and in 2000 the two banks merged.

Today, JP Morgan is one of the world’s leading global investment banks with 20,000 clients including corporations and governments in 100 countries.