Late Lunchtime Links: 2k cash bonuses at RBS; no more hiring at UBS

Baddish news at RBS: they will not be getting cash bonuses restricted to 50k as previously thought: they will be getting cash bonuses restricted to 2k. This news comes courtesy of Mark Kleinman at Sky, who seems to have a hotline to Stephen Hester and is probably reliable.

Predictably, however, it won't be that bad. Although cash bonuses will be restricted to 2k for the sake of appearances, Kleinman says there'll be a further cash payment at RBS in June to help soften the blow.

Separately, there will indeed be no more hiring at UBS. There may even be some firing. On today's webcast, the talk was all of consolidating existing businesses, suppressing costs, and increasing revenues.

UBS CFO John Cryan confessed that Carsten Kengeter, head of the investment bank had, "issued some notes internally which say the focus is now on the cost income ratio." Long term, UBS is aiming to make an additional CHF8bn in revenues per annum, much of which it expects to come from the investment bank, but this must be done with existing staff.

Analysts pointed out that punitive Swiss capital rules due to come in within the next five years could make some of UBS's investment banking businesses uneconomic and questioned whether the bank had a, 'plan B' if those revenues don't materialise.

Chief executive Oswald Grubel then admitted, ominously, that if those revenues don't come through, they will have to "cut expenses very quickly."

UBS bucks trend with big rise in value at risk. (Financial News)

UK about to implement massive tax break for banks; Is the US far behind? (Naked Capitalism)

George Osborne said Tuesday that his government is increasing the rate of its banking levy to boost revenue from the measure by an extra 800m ($1.29bn) to 2.5 bn this year. (WSJ)

Mr Osborne knows that an extra 800m a year in tax from an industry that this month will announce profits of more than 20bn is a relative drop in the ocean. (Telegraph)

The City of London is itself a giant tax haven. (Guardian)

The government wants banks to disclose the pay of their highest 8-10 workers. (Guardian)

Switzerland is experiencing a rush of Russian oil traders. (Financial Times)

Deutsche Bank has been named the number one equity research house in Europe for the first time in 26 years, pushing UBS, the long-term holder of the top spot, into second place. (Financial News)

JPMorgan has hired the former head of risk from the FSA. (Financial Times)

Macquarie downgrades full year profit, says it won't be competing with big US banks after all. (Australian)

RBC Capital Markets hires three directors to its equities business. (LSE)

Josef Ackermann has come under criticism for joking that the inclusion of women on the executive board would make it "more colourful and prettier, too." (WSJ)

Josef Ackermann is a gentleman of the old school. (Business Insider)

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How to show you're an alpha male in China. (Marginal Revolution)