Lunchtime Links: BarCap bankers clearly have most to lose from this bonus pact
The notion of a pact to unilaterally reduce bonuses has resurfaced again. Except this time it only includes UK banks. The Times reports today that BarCap, HSBC, Standard Chartered and RBS have been having discussions about formulating a pact to cut bonuses and increase loans to small businesses. Apparently they want to make a statement before Christmas.
Goldman Sachs, Morgan Stanley, Deutsche Bank, Citigroup and UBS aren't participating in the powwow. Apparently two of these 'big banks' want to pay bonuses at the same level as last year.
Given that no one really expects HSBC or RBS to be overly generous anyway, those with most to lose from any UK-centric bonus pact are clearly at BarCap. As we have noted on various occasions, BarCap really could do with cutting its compensation this year anyway. Unfortunately, it's likely to be slight constrained in doing so because of the number of equities and IBD people it's hired (allegedly on guarantees). If a pact comes to pass, anyone not on a guarantee at BarCap can therefore expect to see their bonus pinched, painfully.
George Osborne's now trying to get EU finance ministers to agree common rules on bonus disclosure. (Financial Times)
David Cameron and Ed Miliband have had a tiff about bankers' pay. (Guardian)
UBS 's equity trading team is now back to full strength. (Reuters)
Resolution doesn't want Citigroup as its broker any more now that so many people have left. (The Times)
Who will buy Ireland's banks? (The Guardian)
Wharton interview questions leaked. (BusinessWeek)
Why prop trading is so hard to distinguish from market making. (DealBook)
It's official: there is not enough money to bail out Spain. (ZeroHedge)
