Investment Banks 'Will Be Hit for Millions' as Hotshots Axed ; FINANCE
Duncan, Hugo, The Evening Standard (London, England)
INVESTMENT banks face legal claims spiralling into the millions as they fire high-flyers to save cash.
Lawyers today said firms in the Square Mile and Canary Wharf are getting rid of some of their hotshot bankers to cut bonus payments with women particularly hard hit. It comes as banks struggle through the credit crunch and economic downturn, which has already cost them billions in writedowns.
Elaine Aarons, employment partner at City law firm Withers, said some investment banks are culling their best staff rather than weaker performers. Important clients then get shared out among surviving, less well-paid bankers.
"This is leaving many City banks open to claims of unfair dismissal or discrimination," she said. "As the economic gloom deepens, numerous City workers are seeking legal advice after being made redundant despite having outperformed colleagues who have kept their jobs." It is feared that 20,000 jobs could go in the City …
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Publication information: Article title: Investment Banks 'Will Be Hit for Millions' as Hotshots Axed ; FINANCE. Contributors: Duncan, Hugo - Author. Newspaper title: The Evening Standard (London, England). Publication date: March 28, 2008. Page number: 41. © Not available. Provided by ProQuest LLC. All Rights Reserved.
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