It wouldn’t be a new year without a firm closing down its equities business – and 2015 proves no exception. While the closure isn’t in the U.S., it still signifies making a living in the cash equities business in the U.S. or elsewhere is still a daunting task.
According to Reuters, London-based Standard Chartered Bank, a 163 year old firm, is closing its global cash equities and equities underwriting businesses, people with direct knowledge of the matter told Reuters last Thursday. The closure ends a chapter that has seen the group struggle for profitability since its inception in 2010.
The bank will dismantle its stock broking, equity research, and equity listing desks worldwide, the sources told Reuters, which will result in more than 200 job cuts, the people added.
According to a spokesman for Standard Chartered, who asked not to be named, a majority of the lost jobs will be in Asia. He added that the firm’s Hong Kong office will suffer the most, while jobs in Singapore, India, South Korea and Indonesia will also disappear.
The closure is part of a larger $400 million cost savings plan the bank announced as it seeks to reverse declining profits and dropping share price.