Lunchtime Links: Pressure is growing for an absolute cap on pay

It may never come to pass, but it's worth noting the noises being made about the need for a cap on the absolute level of banking pay. The loudest are emanating from John Mack, who as we noted recently is suffering from post-banking-pay-hypocrisy syndrome, but appears to have gauged the public mood correctly.

In an interview with Reuters, Mack said banks still don't 'get it', when it comes to pay, that the focus so far has been too much on structure and too little on amounts, and that if banks don't do something about this, governments surely will.

George Osborne, the UK shadow chancellor, who may soon become the real chancellor, appeared to vindicate Mack's instinct in an interview today when he reportedly said that the level of pay in the banking sector is "completely out of kilter" with the rest of society and needs to be brought down.

For this to happen, however, a cap would need to be imposed internationally, covering all banks and (realistically) all hedge funds. This seems unlikely.

US private client brokers have managed to bypass bonus scrutiny. (Wall Street Journal)

Paying low bonuses lost RBS 1bn. (BBC)

The compensation ratio at RBS global banking and markets was only 27%. (Financial Times)

Even when 2008 and 2009 deferrals are added in, the RBS comp ratio is still only 28%. (RBS annual report)

GMB accounted for more than 50% of RBS profits. (Telegraph)

RBS hires for US rates derivatives. (Powermoves)

What pushed RBS over the brink were losses at ABN and the strain they put on funding. (Economist)

Corzine says people don't like Goldman because it 'brings envy.' (YouTube)

Call it the "no banker left behind" program. (Huffington Post)

The human brain is hardwired to hate inequalities. (ViewsFlow)

Bonuses are bad at French banks, but they won't be increasing salaries to compensate. (Bloomberg)

Natixis cut 10% of investment banking jobs in the second half of last year. (Bloomberg)

Deutsche Bank appears to be losing its star subprime trader to a hedge fund. (Bloomberg)

BarCap hires new head of Asia equity research from Macquarie. (Powermoves)

Hays profits down 97%. (Evening Standard)

Lombard Odier plans to relocate its entire Swiss credit team to London. (Wall Street Journal)

Signs that banks are dumping senior staff in the Middle East. (Financial News)

Queen spent a day in the City, but didn't meet any bankers. (The Times)

Damon Buffini flies Easyjet. (The Telegraph)

Analyst drinks bottle of olive oil for $2k. (Dealbreaker)