Job vacancies in the City of London fell by more than a third last month compared with the same period a year ago, according to Morgan Mckinley, the financial recruitment specialists.

It warned the fallout from the credit crunch was far from over and the City faced 'significant challenges' after the collapse of Lehman Brothers.

City bonuses were also likely to be a lot lower this year with hard-pressed investment banks cutting bonus pots.

Financial Times