Lunchtime Links: 80% of you think a big banking tax is coming in the UK, and the EU wants to restrict bonuses to 50% of salaries
Bad news. The UK government's finances may be less dire than first thought, but this is not preventing an outbreak of pessimism over likely punitive measures in the coming emergency budget.
According to our own survey of several hundred London-based financial services professionals, the expectation is that banking will be hit hard on June 22nd: 83% of you expect there will be a unilaterally imposed UK banking tax..
More promisingly, only 20% of you expect bonuses to bear the brunt of the tax pain, although 44% insist you will be moving to another country with a more pleasing tax system if the top rate of income tax increases beyond 50%.
This all coincides with a new draft EU law to restrict bonuses to 50% of salaries, and follows yesterday's curious report on breaking up banks from the Future of Banking Commission.
The Economist points out that forcible separation of retail and investment banks in the UK may not be a good idea on the grounds that i) HSBC and Standard Chartered would probably move to Asia; ii) Barclays might well move to New York; iii) the rest of the City is dominated by the investment banking arms of universal banks.
Beer and tax: a parable. (Fintag)
Morgan Stanley reveals higher than expected losses in April and May, says risks were higher than indicated by VaR. (Zerohedge)
"When you become a trader, you sign a charter saying you must be loyal, transparent and respect trading limits." (FT)
Pierre Henri Flamand has hired another person for his hedge fund and plans to launch with 20 people. (Financial News)
BofA Merrill Lynch has hired some European power and gas traders. (Bloomberg)
BofA Merrill said to hire from Barclays for FX and rates research. (Bloomberg)
The FSA won't be able to attract talent as a support act. (Guardian)
We are only "scratching the surface" of what is possible particularly in statistical arbitrage between any and every market and asset class around the world. (TWS Investment)
"May 4 was the scariest day I've seen for a long time." (Alphaville)
