UK
Another couple of reasons for UK bankers to begin packing their suitcases. Firstly, as the Financial Times reports, the FSA’s heavy-handed approach to pay (weighed against the Fed’s light-touch stance) means that a two-tier system of bonuses is likely to emerge within US institutions with both Wall Street and City operations.
In short, you could get more money for doing the same job in the same company if you were based in New York rather than London.
“We have legitimate concerns on how we can pay our people fairly,” a senior banker at a big US bank told the newspaper. “The FSA appears to be more heavy-handed than the Fed so which guidelines should we be following?”
Obviously, this isn’t the first time the spectre of a UK banker exodus has been raised by any means. However, the FT article coincides with a Bloomberg study, which delivers another blow to Britain’s financial services industry.
London no longer just plays second fiddle to New York as a financial centre, according to Bloomberg’s Global Poll, but has also fallen behind Singapore.
Maybe financial services firms aren’t going to hire much after all (Wall Street Journal)
Bankers expect record bonuses this year (Bloomberg)
FSA taking a tough stance on taxing banks ( Financial Times)
Henderson chief predicts more consolidation in asset management (Times)
London wealth manager hires ex-UBS Saudi chief (Wealth Briefing)
Why banks’ profits are a sham (Deal Journal)
To rein in pay, rein in Wall Street (Deal Book)
Evolution will have bolstered headcount by 10% in six months by December (City AM)
Standard Chartered continues to benefit from emerging market focus (Telegraph)
French bankers in strike ‘shock’ (Reuters)
This year’s must-have Halloween costumes (Alphaville)
London’s financial success over the last 8 years was built on American banks investing resources & capital to win EU business. Now US banks in trouble at home and London is looking like fat that needs to be cut…….