Capital, the US-based broker and investment bank, effectively shut down its London operation yesterday by suspending trading and cutting staff to a skeleton crew.
Pali International applied to the FSA to register a variation in permissions, which will see its regulated activity come to a halt. Around 30 of Pali’s London employees will go, leaving a core staff of around 10. Pali has a number of well-respected analysts on its books, including Angelos Anastasiou and James Ferguson, and a handful of employees may be offered transfers to New York.
The move comes just a month after the firm announced a major restructuring of its London business which would have seen a third of staff made redundant. In the light of sharply falling profits, US management decided to take more drastic action and reduce the operation to a shell.
A spokesman said: “The focus for now is on the US.”