Early Lunchtime Links: A European banking regulator WILL now be based in the City; BarCap still has 20% of European equities build-out to go

Good news, on two counts.

Firstly, it transpires that the big European banking regulators won't be entirely based in Frankfurt after all.

Whereas last week, according to City Am, it was a done deal that all three regulators would be based in Frankfurt, there's now been a change of heart. The new European Banking Authority (EBA) will be situated in London instead.

This could be good news, and could create jobs, except that EBA may still impose unpalatable requirements, no matter where it's based, and the Council of European Banking Supervisors, which the EBA is replacing, is already based in London, so existing staff may just move across.

Secondly, we can confirm that BarCap hasn't totally finished hiring for its equities business in Europe. According to the Financial Times, 20% of BarCap's build out in Europe, and 50% in Asia, has yet to be completed.

There's a rush of hedge fund start-ups due to high-profile spin-outs from the in-house trading teams at investment banks. (Financial Times)

Dixit Joshi is joining Deutsche Bank. (Financial News)

By joining Deutsche, Joshi might try to emulate Anshu Jain. (Financial Times)

Goldman's European head of corporate comms is off to UBS. (City AM)

"We remain optimistic that the second quarter 2010 activity level slowdown represents more of a fourth quarter 2009-like pause as opposed to the beginning of another sustained cyclical downturn." (WSJ)

Adair Turner: Large bank bonuses for selling over-complex and risky products of little real use to humanity were a major problem. (Guardian)

Over the past two or three decades, bankers have conditioned themselves to suppose that they merit a standard of living far higher than that of ordinary mortals. (Financial Times)

Founder of Goldman Sachs wore a cape and crown for fun on holiday. (Bloomberg)