Lunchtime Links: Paranoia in the pub; investment bankers are being coached on bar banter

In (what we imagine) to be similar to the WWII ‘loose lips sink ships’ campaign, an increasing number of investment banks are rolling out behavioural training for staff on what they can and cannot say when conversing with colleagues in the pub.

Such is the paranoia that the next insider trading case or other scandal is just over the horizon that compliance is starting to crackdown. Posters adorn trading floors warning people to be vigilant about any suspicious behaviour, while other firms are coaching their employees on pub talk.

These were mainly done via webcasts, where participants act out conversations with colleagues where the talk turns to clients or office gossip: “You have to turn around and say, 'No, let's not talk about that'," one banker told Reuters.

This is, of course, quite understandable. When Barclays’ Libor e-mails were released by the FSA, they painted a picture of juvenile behaviour where market abuse was passed off as casual banter.

Division heads are now required by the FSA to undergo more vigorous interviews before they’re given the job.

"It should protect you," said the head of one debt team. "If you are doing everything by the book, it means you know you can show you have done nothing wrong."

Meanwhile:

Investment banks’ legal bills could mount up to $176bn (Financial News)

Investment banks are offering £5k more to graduates this year (Telegraph)

Europe will account for the largest proportion of cuts as Nomura scales back (Reuters)

US banks are more lax at implementing clawbacks, which is putting European firms at a hiring disadvantage (Financial Times)

Swiss fund manager expands ‘dating site’ (Times)

A possible successor to Lloyd Blankfein has spent $27m on a New York apartment (Dealbook)

On 11% of hedge funds have beaten the S&P 500 (Forbes)