Lloyds Banking to cut 15000 jobs, to focus on UK

Lloyds Banking Group, Britain's biggest mortgage lender, will cut 15,000 jobs and reduce costs by an additional 1.5 billion pounds ($2.4 billion) as it withdraws from overseas units and increases its UK focus. Most of the job losses will come in the UK as a result of cuts to management functions and centralizing some roles. The bank also plans to withdraw from more than 15 of its 30 overseas units. British banks, including Lloyds, HSBC and Barclays are reviewing their operations and trimming profitability targets as regulators enforce higher capital requirements to prevent a repeat of the 2008 financial crisis. Lloyds had already pledged 2 billion pounds of savings annually following its purchase of HBOS 3 years ago, which has so far resulted in about 27,000 job losses. Lloyds has a total of 104,000 employees with about 4,000 outside the UK. HSBC, Europe's biggest bank, had said it would cut 700 posts.

- It looks like what could be another wave of mass layoffs starting up again just as the world thought that the 2008 financial meltdown was over. With the economy supposedly in a recovery and the stock market seeming to have picked up right where it left off since 2009, the next thing is to look at the jobs front, and there things seemed to be easing for a short while before reversing course again.

But if you were to look at let's say the S&P500, you would note that the stock market has been in a consolidation pattern since the 1344 level back in Feb 2011. The SPX has been unable to make a convincing run for the 1400 level since then. Although it has not been an outright crash so far, we could suppose that the 6-month lag time also applies, which is why we might be looking at some consolidation on the jobs front in recent weeks.

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