Lunchtime Links: Inept graduate trainees flooding financial services with fraudulent quackery

Now that senior financial services professionals are getting an increasing proportion of their pay deferred and are therefore more expensive to poach, most banks are reaching the same conclusion: it makes sense to grow talent in-house.

Or does it?

According to Savvas Savouri, partner and chief economist at Toscafund, a glut of under-experienced trainees with over-onerous responsibilities is contributing to the dissolution of the financial services industry.

Savouri says finance is so lawless it's like working in medicine in the 18th century - "full of frauds" and "very poorly regulated."

He also says that: "Graduate trainees turn up (to a new job) and far too soon they're given control over assets," and that, "Because they look the part ... that can be very dangerous."

His solution appears to be to reinstate regulatory exams. These were discontinued for people working only with wholesale clients in the UK a few years ago. "What should be happening ... is rather than (regulating) bonuses, you regulate the human capital," Savouri suggests.

Actually, Stuart Gulliver won't be moving to Hong Kong after all. (Telegraph)

James Gorman tells Morgan Stanley bankers they need to "show consistent performance" and further raise revenue in order to see a rebound in pay. (WSJ)

A displeased Morgan Stanley employee breaks it down. (Dealbreaker)

More bankers are getting zero bonuses. (Telegraph)

"The ratings of individual bankers is getting tougher, so the tailend of the bank is getting longer. There are now a lot of strong bankers in that tailend, who will get zero bonus and decide to leave." (Reuters)

Everyone except metals traders are getting paid less. (Bloomberg)

Berenberg has launched a UK private bank. (Bloomberg)

"Zero-interest policies as hidden subsidies to banks." (Economistsview)

Even a small rate rise could be fatal. (Telegraph)

Here's the story of how Cameron and Osborne secretly tried and failed to kill tougher European rules on bankers' bonuses. (Guardian)

The City is subsidising the rest of the UK. (CityAm)

The capital's contribution to the UK fell to just 1.4bn in the 2009/10 tax year, much lower than the 17bn average over the past decade. (Guardian)

Jonathan Chenevix-Trench: "We've not solved this conundrum of bankers making hay when the times are good and taxpayers picking up the tab when times are bad." (Bloomberg)

Katie Price is in Switzerland, but not at Davos. (NowMagazine)