IN THE first significant step since it took over the Midland Bank,

HSBC is merging James Capel Gilts and the much larger Greenwell Montagu

Gilt-Edged with effect from Monday, writes ANDREW WILSON. James Capel

Gilts will then cease to trade.

A spokesman from the HongKong Bank was unable to say how many jobs

would be lost although the numbers will be small. Greenwell Montagu, a

Midland subsidiary, is the largest of the London gilt dealers.

Capel was acquired by the Hong Kong Bank some eight years ago with its

attraction being the strength of its equity side.

* BRIAN Goldthorpe, the highly respected and well-liked Midland banker

who is now in charge of risk management of the enlarged group has had to

take premature retirement because of ill-health. He will leave a major

gap as there is a paucity of clearing bank experience and there is no

obvious successor in sight from within the Midland while Hong Kong's

knowledge is of fairly limited use in the UK.