Lunchtime Links: "Citigroup has been an overpayer in investment banking for the past decade"

Following on from yesterday's little Citigroup story, we have some further reflections from the vale of Vikram.

First among them, is the fact that as fast as Citi hires people, it appears to be losing them too. Bloomberg estimates that Citi's hired 15 MDs in investment banking in Europe this year, but has lost 12.

Second among them, is the fact that in order to attract new people, Citi appears obligated to waft lots of cash about. For example, it's allegedly paying Stephen Trauber $30m over three years. Other banks have also been known to pay big guarantees, but Citigroup appears particularly renown for it.

Now it's been outed by John Wadle, an analyst at Mirae Asset Securities, who told Financial News that Citigroup's been, "an overpayer in investment banking for the past decade."

Anecdotally, the problem appears to be not that Citi pays everyone too well, but that it pays new hires too well and neglects everyone else. This is bad news for existing employees given Citi's putative hiring spree: the bank is aiming for headcount growth in Europe and Asia, where it aims to triple Chinese headcount in the next three years.

Standard Chartered wants to hire 4,000 people in South East Asia. (Financial Times)

George Osborne says British banks are doing better than US ones in China. (Bloomberg)

Vince: "We expect the banks to behave responsibly and with moderation and the government will respond to the situation as it needs to." (Bloomberg)

Between now and the end of 2012, UK banks and building societies must find ways of refinancing between 750bn and 800bn of lending. That's a number approaching half GDP. (Telegraph)

Morgan Stanley has exited all but one of its prop trading businesses, mostly because it was no good at it. (Business Insider)

Morgan Stanley just had its worse trading quarter since 2006. (Bloomberg)

James Gorman says hero bankers with journalist friends who write about them and massage their egos, are a problem. (Bloomberg)

"It seems pretty terminal," says one large Gartmore shareholder. "There is no real future for them as an independent group without the hedge fund business and Roger. (Financial Times)

10 signs you might need a trading sabbatical. (KirkReport)