This is by no means a new defence when talking about cracking down on bankers’ pay, but now that the FSA has extended its remuneration code to include more than 2,500 financial services firms, doubts have again been raised about the City’s appeal.

The Telegraph has said that the firms affected by the code – which includes stockbrokers, asset managers and hedge funds among others – will be at a “competitive disadvantage” when it comes to attracting and retaining talent.

“The extension of the code in some form to many additional firms risks putting those affected organisations at a competitive disadvantage for recruitment and retention. There is a danger of a two-tier system emerging, between large and small banks, the individuals within them, and also between EU and non-EU players,” Tom Gosling, reward partner at PricewaterhouseCoopers told the newspaper.

Meanwhile, Irving Henry from the British Bankers Association has said that financial services firms will look the relocate from the UK to escape these rules.

Bankers are not leaving the City (Independent)

Macquarie hints at possible shake-up (Bloomberg)

Nomura has tripled the pay of a select group of 40 graduates (Bloomberg)

The best paid economist in the UK works for an investment bank and earns 1.5m (Independent)

“The FSA shows that of the 27 firms netted by its first regulatory trawl, 2,800 bankers got more than 1m, almost 90% of the total in bonuses. Thousands more lower down the food chain also benefited from bonuses, usually worth at least 80% of their total income.” (Guardian)

Moore Capital now also has a Swiss office (FINalternatives)

BNP Paribas hires new head of equity sales in the US (Dealbook)

Citi settles with SEC for $75m over sub-prime exposure (Wall Street Journal)

Banker’s (suit) belongs in a museum ( Financial News)