Lunchtime Links: Actually, this does NOT augur well for pay at UBS

If you just read the headline, it sounds great: UBS is increasing bonuses by up to 25%.

However, if you read beyond the headline, it sounds bad: UBS is increasing bonuses by up to 25% in Switzerland. It is not increasing bonuses in London. In London, bonuses will probably fall.

Why is this? It's mostly because UBS has cost issues: in the third quarter, the cost/income ratio across the bank rose to 88%; any increase in Switzerland must therefore be tempered by a reduction elsewhere.

It's also because of the strength of Swiss Franc. Between January and December 2010, the pound fell 10% against the Swiss currency. As analysts at Nomura point out, this will weigh upon revenue growth rates and profitability in the investment bank in London (as well as in the eurozone and in the US). It will also weigh on pay - particularly if UBS's Swiss bankers are awarding themselves generous pay increases.

European bankers want to work for US banks instead. (Telegraph)

European banks are applying bonus rules more vigorously than others. (FinancialNews)

Yes, BarCap WILL be paying in CoCos. (Financial Times)

Nick Clegg says there is a 'very strong case' for separating high-risk 'casino' banking from low-risk high-street banking. (Guardian)

Shares in RBS and Lloyds drop after Nick Clegg says they could be broken up. (Guardian)

Ed Balls wants a new 3.5bn tax on bonuses. (Telegraph)

Chairman of the Commission on Banking: "The popular 'utility/casino' distinction between types of banking activity seems more catchy than helpful." (Guardian)

"Retail banking is safer with universal banking than with separated banking if and only if the probability that I (investment bank) saves R (retail bank) exceeds the probability that I sinks R." (Telegraph)

The FSA is freezing compensation for the 2nd year running and paying bonuses equivalent to 15% of total pay. (Citywire)

Project Merlin conclusions are 'weeks away;' RBS may have to set a contingent bonus pool. (Telegraph)

Everyone wants a hedge fund marketer. (Telegraph)

Standard Chartered is in an 'economic super-cycle' and wants to hire 2,000 staff in Singapore by the end of 2012. (Reuters)

PricewaterhouseCoopers wants to hire 250 people in the Middle East over the next six months. (Telegraph)

The new Bribery Act could make it illegal to wine and dine a client at Wimbledon. No one can say for sure what will and won't be allowed. (SundayTimes)

Goldman Sachs women don't laugh, they operate. (BusinessInsider)

In the ultimate analysis, how many people stick around for 10, 20, 30+ years of working lunatic hours with other lunatics if they're not even remotely interested in the work? (StoneStreetAdvisors)