Lunchtime Links: The Independent Commission on Banking suggests an alternative method of separating banks

The Independent Commission on Banking has produced an Issues Paper and 'call for evidence' before it makes any decisions on restructuring British banks. The option of totally segregating retail and investment banks is in there, but so is an interesting halfway house.

Alongside complete separation, which it admits could be "unworkable" and "of little practical value," the commission suggests a more pragmatic form of separation in which multiple subsidiaries operate under a single holding company.

Under this proposal: "Different activities [would] be carried out by entirely separate companies with no affiliations, and would prohibit banks from sponsoring any entities (regardless of the nature of the activities they conduct) that are not fully consolidated for regulatory and accounting purposes."

Various other methods of reform are also still 'on the table', including: narrow banking and limited purpose banking; limits on proprietary trading and investing; structural separability, including living wills and resolution schemes; contingent capital; structure-related surcharges; and 'Reform options related to the structure of markets' (central clearing of derivatives trades.')

Interested parties have until the 15th of November to send in their own suggestions on how the banking system ought to be reformed. They should be sent to <a href=" feedback@bankingcommission.gsi.gov.uk " feedback@bankingcommission.gsi.gov.uk.

Banks have been invited to 'secret FSA bonus talks' (Sky)

How the FSA will be tailoring the bonus rules to the asset management industry. (FSA)

BofA Merrill is getting into the derivatives clearing business. (NYObserver)

BAML is doing very well in European M&A. (CNBC)

Global M&A surged in the third quarter, but fell in Europe (Reuters)

Credit Suisse commodities traders are leaving to start their own fund. (Financial News)

HSBC has hired a new head of credit trading from Markit and a new head of equity derivatives trading from Barclays Capital. (Financial News)

New head of European equities sales and trading at CIBC. (GlobeandMail)

Every single window in 125 Broad Street, the old Stock Exchange tower, needs replacing. (The Times)

The tax plight of the $250k-$500k crowd. (Harvard Business Review)

Nine month virtual cash trading game offers a $1m prize. (Playmymillions)

.