StanChart cuts could trigger more departures

The Asia-focused British bank is closing its equity derivatives and convertible bond divisions. Headhunters think this could cause more departures in investment banking.

Standard Chartered’s decision to close its equity derivatives and convertible bond units is expected to have a demoralising effect on investment banking employees in other divisions and may prompt additional departures, industry observers and recruiters predict.

The UK-headquartered bank revealed plans to shutter the units in a statement on Monday. It said the decision was made after conducting a review of the divisions which considered product innovation and execution, as well as a more efficient use of capital.

StanChart’s new chief executive Bill Winters has expressed the need to trim or eliminate capital intensive and low profitability departments in an effort to raise the...

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