60,000 finance jobs gone

AT LEAST 60,000 City and Wall Street staff have lost their jobs in the worst downturn for more than a decade. But it will be a sparkling Christmas for top bond boss Bob Diamond, head of Barclays Capital, who is expected to buck the gloomy trend and pick up a £10m bonus.

Barcap, which accounts for nearly 20% of parent Barclays Bank group profits of £3.5bn last year, specialises in bonds and gilts. It has made record profits this year as investors have shied away from the stock markets and moved into bonds.

Elsewhere, bonuses are expected to fall by up to 70% and staff fear for their jobs. JP Morgan Chase has suffered the biggest cuts and will have laid off 8,000 staff by the end of the year. Merrill Lynch is losing more than 7,500 - including Henry Blodget, the analyst who came to symbolise the dotcom boom and bust, and who recently left with an estimated £1.4m pay-off. Credit Suisse First Boston has cut more than 5,000.

Tensions are also mounting at investment bank Lazards. European bankers Gerardo Braggiotti and George Ralli are in talks over joining rival UBS Warburg amid discontent