Hundreds of workers face redundancy after banking giant Lloyds TSB announced it is to close its stocks and securities business.

350 staff at its securities services offices in Chelmsford are set to join the dole queue. More than 400 workers in central London will be affected, too.

Bosses at the newly-merged company said the securities business - safekeeping and administration of stocks, shares and cash for companies - was now so large it could not possibly compete.

Instead they have decided to stand back. This puts jobs in jeopardy at the bank's offices in Legg Street, Chelmsford, unless other Lloyds TSB positions are found for displaced staff.

Spokesman Joanna Charlton said the bank had only 430 customers in the particular field. These would be transferred to State Street Bank and Trust Company.

"All the employees in Legg Street will have been offered voluntary redundancy or early retirement. Should this not be appropriate for them then we are doing everything we can to find them positions elsewhere in Lloyds TSB."

But Miss Charlton admitted if this could not be done, then jobs would be lost. Ken Farquhar, managing director of Lloyds TSB Securities Services, said the decision had been made after much consideration.

"One of the group's governing objectives is to be a leader in its chosen markets and Lloyds TSB is a relatively small player in the international global custody business," he said.

UNIFI, the union for finance workers, today deplored the loss of nearly 1,000 jobs.

Negotiator John Townsend said: "The bank has confirmed that compulsory redundancy will only be used as a last resort.

"UNIFI has reminded management it will take whatever steps are necessary to oppose compulsory redundancy."

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