An article relating to this blog post on Finextra:
Lehman bankruptcy and Merrill buy-out shrinks industry IT budget
From a technology perspective, the US securities industry has shrunk by around six per cent in recent days following Lehman Brothers' bankruptcy and the acquisition of Merrill Lynch by Bank of America...
Amid serious concerns that the escalating banking crisis will result in a major loss of sales, Thomson Reuters has instigated a recruitment freeze at its financial markets and technology unit.
According to an internal memo seen by the Wall Street Journal the vendor has halted external recruitment for new positions except where the company is shifting jobs to cheaper locations such as India, China and Poland.
In the memo Devin Wenig, CEO of the vendor's markets division, told staff that the company need to make "prudent choices" as the pace and intensity of the changing financial landscape is "exceptional".
Gareth Stewart, an analyst at Collins Stewart, told the WSJ that the worsening financial situation will inevitably hit the companies that supply the financial services industry.