The economic downturn delivered another battering to the UK’s financial services sector yesterday (December 1st), with HSBC and Credit Suisse announcing major cutbacks and the London Scottish Bank collapsing into administration.
Credit Suisse said it would layoff 650 people in all, most from its investment banking division. It blamed poor market conditions for the move.
The Swiss bank recently announced third quarter losses of 1.26 billion Swiss francs (£704 million) – down from a profit of 1.3 billion francs 12 months ago, the BBC stated.
Meanwhile, HSBC said it would be cutting 500 posts across the UK. The Independent said the bank’s legal and finance divisions, which are based at London’s Canary Wharf, will absorb the majority of the redundancies.
Elsewhere, there was more gloomy news for the banking industry when London Scottish Bank confirmed it has been placed in administration by the high court. In a statement, the bank said it would continue to operate its business as usual.
Nevertheless, the Treasury moved to confirm that eligible depositors’ savings will be protected under the Financial Services Compensation Scheme.
Dec. 02, 2008
Source: London Stock Exchange