The real effect of the credit crunch on once high flying London is now becoming apparent.

Finextra: Credit crunch to cost 20,000 City jobs

As many as 20,000 City jobs will be culled over the next two years as a result of the global credit crunch, according to a report from the centre for economics and business research (CEBR) which warns that the employment downturn will be worse than during the dotcom crash.