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Death of the long lunch leaves bankers struggling to seal deals

Canary Wharf
Canary Wharf

Bankers have warned that their attempts to clinch deals could be hampered by a post-lockdown ban on the long City lunch.

Investment banks have imposed tough rules on meetings in a bid to prevent the spread of Covid-19, with firms such as HSBC forbidding drinks and meals with clients.

Senior industry figures now fear that the regulations make it impossible to spend time getting to know potential clients and spells the end to informal off-record chats.

One dealmaker with decades of experience said that in the past few weeks he had not heard of a "single example of long lunches, or any lunches frankly – we're still in a world where we're quite cautious".

He said deals were getting done "with video conference calls when needed", but largely only where there were existing relationships.

The dealmaker added: "It is harder if you're a coverage banker or a private banker in wealth management and you're trying to get a new prospect."

HSBC has produced an internal rulebook that bans staff from taking public transport to a meeting and says that all gatherings must be kept as short as possible, with the length of each recorded. Only guests who are "absolutely necessary" can attend.

Nobody at the bank has been given clearance to meet clients for entertainment purposes, a source said.

HSBC is not the only bank where staff who want to meet clients have to follow strict protocols.

Goldman Sachs and JP Morgan are among those telling bankers that while there was no blanket ban, approval was required and rules must be followed.

Several banking executives also said that clients do not necessarily want to have a face-to-face meeting with them yet either – forcing rainmakers to try to seal deals online instead.