Bloomberg reported today that the amount of money from City bonuses coming into the London property market will fall 60 percent to 2 billion pounds in the coming year, as financiers, accountants and lawyers choose to invest in hedge funds instead of housing, according to research carried out by Savills.
This should definitely come as no surprise as this summer’s turmoil in the global financial markets continues. In the beginning of October, Reuters reported that the global credit crisis will chop 16% of this year’s bonus payouts in the City of London. However, it seems like the credit crunch has just started sinking its teeth into the markets.
More and more of the top tier investment banks announce thousands of job cuts as their losses have been steeper than expected (honestly?)!
In a nutshell, in the past two months almost 20,000 financial industry workers were made redundant, and quite a few top executives were fired. As job cuts spread beyond financial services, Wall Street fears that more heads will roll.
- Bank of America 3,000 jobs in week in its investment banking division
- Morgan Stanley 300 job cuts
- Bear Stearn’s 310 job cuts
- HSBC 750 job cuts
- UBS 1,500 job cuts
- Countrywide Americas biggest mortgage lender made 12,000 workers redundant
- IndyMac Bancorps 1,000 job cuts
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