Credit Suisse London jobs to go

by Gill Montia

Story link: Credit Suisse London jobs to go

Credit Suisse is the latest bank to cut jobs as a result of the global credit squeeze, having made 150 employees redundant from its mortgage-backed securities business.

The jobs losses are mainly at the Swiss bank’s New York offices but there will also be a head count reduction in London.

The bank summed up the situation in a statement saying that “In line with the current environment and outlook, we have made targeted reductions.”

As the US sub-prime mortgage crisis unfolded across the summer, a number of financial institutions have reduced staff working on mortgage-related investments.

This type of investment consists of packaged-up mortgages, and as defaults on loans made to people with poor credit histories increased, investors have backed away from securities of this kind.

Financial analysts are forecasting further job losses in the sector and some expect Deutsche Bank to be the next major bank to make job cuts.

Deutsche Bank is reported to be writing down loans worth as much as £1.2 billion in its third-quarter results, which will be published in October.

The credit crisis has been a major source of job cuts so far, with estimates as high as 50,000 worldwide.

In the US two prominent lenders have announced major reductions in staff this month: Countrywide is losing up to 12,000 employees and IndyMac Bancorp has cut 1,000 jobs.