Thousands of financial sector jobs lost since Rock crisis

| September 14, 2010
’Thousands

A report has revealed around 100,000 finance jobs have been lost since the onset of the credit crisis three years ago.

On the third anniversary of the run on Northern Rock, there have been significant job losses within the sector.

The Unite union said that little had changed to improve the regulatory regime in order to prevent another meltdown.

Unite national officer Rob MacGregor said: “Today marks three years since the spectacular scenes of the run on Northern Rock which sparked the events which saw a banking crisis across the UK.

“While 100,000 hardworking UK taxpayers have become scapegoats and lost their jobs in banks and call centres, little has changed for the banking spivs,” he added.

Lloyds Banking Group and Royal Bank of Scotland, both partly-owned by the taxpayer, have announced almost 40,000 job losses since 2008, said Unite.

Mr MacGregor continued: “While the banks cut customer service staff, investment bankers continue to extend their risky activities and the salaries and shares of these bankers continue to increase to colossal heights.

“As a result of the finance crisis the taxpayer is now having to prop up Northern Rock, Lloyds Banking Group, RBS and Bradford and Bingley, yet the banks have quickly now returned to business as usual.”

However, new stricter rules have been agreed this weekend, at Basel, Switzerland.

The agreement could force banks to raise fresh equity in order to withstand future downturns in the global financial system.

Following the global financial crisis, the G20 leading nations urged regulators and central bankers to introduce stricter bank capital rules.

The G20 leaders are set to approve the weekend’s agreement when they meet in Seoul later this year, with the new rules being introduced from 2013 in phases.

The new regulations will mean some banks will need to raise further funds from shareholders.

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