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Schroder cuts back in Asia
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January 15, 1998: 9:55 a.m. ET
U.K. investment firm scales down in troubled region and drops 220 jobs
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NEW YORK (CNNfn) - Schroder PLC said Thursday it is scaling down its operations in Asia, cutting as many as 220 jobs in the troubled region.
The U.K. investment firm's move -- which sent shivers through the financial community in Hong Kong -- underscores the problems that even western banks must face in dealing with the Asia financial crisis.
Troubled loans and weakened currencies already have led well-known brokerage houses such as Peregrine Investment Holdings Ltd. of Hong Kong and Yamaichi Securities Co. of Toyko to close their doors for good. And Western banks such as Barclays and NatWest Securities have sold parts of their Asian operations.
"We're dealing with something that's an ongoing process," said one trader, who requested anonymity.
"As investment banks deal with the realities of the marketplace, they've obviously had to take stock. Over the short term, [others may follow suit] to set themselves up over the next two to five years," the trader said.
The job cuts will affect Schroder's equity operations throughout the region except for Japan. A third of the cuts will occur in Hong Kong.
In addition to Hong Kong and Tokyo, Schroder has offices in Singapore, Kuala Lumpur, Jakarta, Bangkok, Shanghai, Taipei, Seoul and Bombay.
As of 1996, Schroder employed 1,300 people in the Asia Pacific region.
Schroder officials in New York declined to elaborate.
-- by staff writer Robert Liu
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Schroder
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