The global credit crisis keeps spreading like a financial plague as it forces HSBC to cut 1,100 jobs or around 4 per cent of its workforce with 500 positions in the UK alone. Most of the positions that will be lost are within their global banking and markets operation.
Bradford & Bingley also reported job cuts of approximately 370 jobs as the lender’s future remains uncertain. Although British banks could say they have weathered the storm a bit better than their US counterparts, it seems a domino effect of bad news one day after another.
At the moment, the US government is trying to quickly pull together a massive $700 billion rescue package to bail out its collapsing financial sector. Washington Mutual, the latest victim to fall, is the largest US bank in history to go under. JPMorgan Chase was there to buy out the struggling bank adding to its growing portfolio which includes Bear Stearns purchased earlier this year.
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