New City Jobs Plunge By 15%
New City jobs have plunged by 15% within a month, according to a survey released after a scathing review of the Libor scandal.
Research showed that 2,490 job vacancies appeared in September, down from 2,925 in August.
The City slide comes after a steady summer job market, according to data compiled by an international recruitment firm.
"The last quarter has seen two of the UK's most successful banks put in the stocks, the widening of the Libor scandal and announcements by a number of banks to continue to scale down their investment banking operations," Mark Cameron, Chief Operating Officer at Astbury Marsden, said.
"It has proved to be an unexpectedly bad summer for bankers," he said.
Astbury Marsden said the Centre of Economics and Business Research has predicted that by the end of 2012 the City will have lost 100,000 jobs since 2007 - leaving 255,000 finance jobs, the lowest since early 1996.
On Friday, the Financial Services Authority's Martin Wheatley released his review on the Libor rate-setting system.
Urging major reform of the loosely-regulated system, Mr Wheatley said: "The system is broken."
Recruiters now believe excess damage could be caused to the sector over increasing scrutiny in the wake of the sector-inflicted global financial crisis.
"Politicians, regulators and other Government agencies here and in New York now need to be careful not to cause the sector unnecessary collateral damage," Mr Cameron said.
"Tighter regulations, lower returns caused by the need to hold higher capital reserves and low levels of activity caused by continued political wrangling over the eurozone crisis have all conspired to depress income for investment banks."
So widespread is the tarnish now afflicting the City sector that many investors are bringing pressure to bear directly on institutions.
"There has been demand from banks to put in place senior relationship managers who have the gravitas to reassure corporate clients over the advice they have been given and the products they have been sold," Mr Cameron said.
"Investment banks realise that all the scandals of the last few years have impacted on their credibility.
"So. there is a new wave of additional requirements for very senior client-facing staff. Some banks are even bringing back employees who may have retired.
"They are bringing back into client-facing roles those managers who are seen as trusted advisers who can bridge that credibility gap."