Lunchtime Links: BarCap has increased headcount by 2,300 this year (and is still hiring)

It was Barclays' turn to report its second quarter earnings this morning and - despite an overall increase in profit by 44% to reach 3.95bn - BarCap's results were fairly disappointing.

A strong first half in 2009 has made for some unfavourable comparisons, with top-line income in 2010 dropping by 32% on the same period last year. This reflects sluggish investment banking activity in May and June as well as factors like the UK election and new financial regulation in the US, according to BarCap's head Bob Diamond.

Still, it wasn't all bad. FICC income slumped badly (by 40% year-on-year to 4.9bn), while equities and prime services dropped by 18% - although the bank says that improved client flow in cash equities offset larger losses in equity derivatives.

Similarly, its investment banking division has held up well, with income down just 6% year-on-year.

BarCap is still recruiting equities and investment banking, it says. So far this year, headcount has increased by 2,300 (to stand at 25,500) due to "investment in sales, origination, trading and research activities".

Despite a 29% increase in wages - primarily related to the BarCap build-out - compensation ratio at the bank is currently 37% (compared to 41% at this point last year).

Goldman attempting to stop prop traders defecting to hedge funds (Financial Times)

Commerzbank returns to profit ( Financial Times)

Citigroup loses corporate broking MD to Deutsche (Financial News)

Jefferies hiring for CDO trading team ( Financial News)

Bank of America recruits for rates and currencies research (Business Week)

Standard Chartered could leave London (Telegraph)

Barclays Wealth expanding alternatives team (HFMWeek

Analyst hall of shame on Lehman calls (Alphaville)

Banks asset management arms may soon receive a boost (Financial Times)

Bankers still know how to party (Sky News)