Dresdner Move Shows Citys Pulling Power

"I don't think the trend is going to move away from operations being centred on London. There are firm indications banks will keep on coming.

The culture, legal framework and tradition of innovation are all important," one analyst said.

Dresdner, Germany's second largest commercial bank, also announced its investment banking arm Dresdner Kleinwort Benson was taking over London-based specialist bond boutique Luthy Baillie Dowsett Pethick & Co to cement the move.

"This is in line with the trend, not just from German banks but also from the Swiss, to build up business in London," John Leonard, banking analyst at Salomon Brothers in London said.

 

Eurobonds have proved an easy and popular way for companies, countries and supranationals to raise money as they are sold and traded internationally.

The market grew up in London and has mushroomed into a multi-billion dollar business. Dresdner's takeover of British merchant bank Kleinwort Benson was seen by many as an attempt to mimic the path

taken by its great rival Deutsche Bank.