Capital2's Blog

Recruitment and Career advice for the High Tech and Banking Industries

Banking Woes set to continue??

The last 7 days has seen a spate of high profile banks post significantly low profits and high losses on the back of the US Subprime market collapse. Merrill Lynch and Citi have binned CEOs and Capital2 believes more will follow.

The extent of the impact on the european market is far from clear – without a doubt the big european banks are exposed due to the complex nature of the investment market and 2008 should be a rough year. We don’t believe the banks will collapse due to the massive impact this will have on the wider economy (more likely central banks wil prop them up) but nevertheless the risks / problems associated with lending to the sub-prime market have really come home to roost! If you’re in banking, expect a significantly lower bonus than usual this year.

How this will affect the recruitment market is again not too clear, we would expect some cautiousness but that hiring will continue, particularly in risk analytics as the need to really mitigate lending will be paramount.

For more information contact one of the Capital2 solutions team via www.capital2solutions.com

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November 8, 2007 - Posted by | Banking News, Macroeconomic News |

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