Abbey National is preparing to transfer the management of £28 billion of funds from its Glasgow-based asset management division to State Street, according to leaked internal correspondence reported in the Scottish press.
According to reports, Abbey plans to go public with the scheme on 22 January. The bank has yet to comment.
The rumours have been greeted with dismay by Scottish business leaders. Abbey National Asset Managers currently employs 173 people in Glasgow, including 71 fund managers, analysts, and support staff, and another 102 in the middle and back offices. It is likely that most of these jobs would be moved to London under any outsourcing agreement with State Street.