Lunchtime Links: Thanks to the FSA, London bankers are losing out on pay

If you want to cash in on this year's bonus soon, London isn't the place to be. Financial News points out that Citigroup's City bankers are already losing out from the FSA's zealous interpretation of the G20 recommendations.

Following the G20 meeting last September, the Financial Standards Board produced a set of recommendations including the suggestion that at least 40% of bonuses should be deferred for at least three years.

The US government took the FASB's proposal as a mere suggestion, but the UK government and FSA embraced it wholeheartedly. As a result 40% of bonuses in the City must be deferred for at least three years, and 60% of bonuses above 1m must be deferred for a similar period.

As a result, while Citigroup bankers in the US will be able to access 60-75% of this year's bonuses in stock options vesting in April 2010, Citigroup bankers in the UK will have to wait longer to get the bulk of this year's pay.

Although vesting in the UK can start in 2010, a spokesman for the FSA tells us vesting cannot be disproportionately weighted towards year one. At most, therefore, Citigroup's UK bankers will be able to get 33% of their deferred bonuses this April. On a $1m deferred bonus, that's a difference of up to $420k compared with their colleagues in the US.

Some employees, particularly Americans who have been working in their London offices, are asking to go home. (The Times)

Goldman will pay most of its 2009 bonuses in stock vesting over three years, but which can't be sold for five years. (Reuters)

The FSA will be looking more closely at candidates' market knowledge and understanding of risk, business strategy and governance. (Financial Times)

Darling tells bankers to get off the front pages and do some work. (Bloomberg)

George Osborne says he wouldn't break up universal banks. (Wall Street Journal)

JPMorgan's launching a 300-person global corporate banking unit, focused initially on China, India and Brazil, the UK, Germany and Switzerland. (Financial Times)

"Daiwa needs to rebuild its investment banking business urgently." (Bloomberg)

Prepare for a slow crawl out of banks and into commodity traders. (Reuters)

SG has hired a senior M&A banker from RBS, and another one from Lazard. (Reuters)

UBS AG senior currency strategist Benedikt Germanier decided that he had become just another battery hen on a trading floor. (Bloomberg)

Coming soon: Money Never Sleeps. (Alphaville)