Job losses accounting for about 15 % of the US and European investment banking industry have become a near certainty in the first half of this year following the latest turmoil on Wall Street, senior bankers have warned. Financial Times

The US is expected to see the greatest reduction in headcount, at about 15%, reflecting the rapid slowdown in the economy and looser employment contracts.

Cuts totalling about 10% are expected in the City of London and other European financial centres.

JP Morgan’s integration of Bear Stearns, the collapsed investment bank, is expected to lead to substantial layoffs, dumping candidates on to an already crowded labour market.