So you thought Lehman bankers left to twiddle their thumbs or pick up big guarantees over at Nomura? So did we, but according to an article in last weekend’s Financial Times, this is not necessarily so. The FT says that some of Lehman’s traders were retained by PwC to unwind its trading positions and that these lucky individuals received a ‘new pay package with a hefty bonus component if they managed to strike deals that were advantageous to the Lehman estate’. The precise dimensions of the new pay packages are not divulged, but they may well have been large: Steve Pearson, one of the PwC administrators working on Lehman, told the FT: “Some positions that we moved, we made gains that exceeded the entire earnings of one of the divisions last year.”

70,000 jobs to go at US banks. (FT)

Merrill has closed its standalone prop trading business, too. (Financial News)

More layoffs coming at Citigroup. (New York Times)

What is wrong with Goldman Sachs?
(CNBC)

Will Goldman go private? (Clusterstock)

…No, but it will cut prime brokerage and prop staff 20-30%. (CNBC)

Where the layoffs are. (CNBC)

Deloitte hires leveraged finance and structured products bankers. (Financial News)

American Century Investments, Brandywine Global Investment Management, and Vanguard Investments have all set up sales offices in London. (Financial News)

Headhunters want bankers for new Treasury unit. (Telegraph)

How to set up a hedge fund. (Alphaville)

Bonus jackpot can be yours in five easy steps. (Bloomberg)

Barclays is giving ‘careful consideration’ to the issue of remuneration. (Independent)

No bonus for Wuffli. (FT)

Tax take from banking bonuses, salaries and national insurance contributions to fall 6bn in 2009. (Telegraph)

Advice for the investment banker to be. (Wall Street Journal)

Masseurs are hiring. (FT)