Forget stormy, rainy London. Think Malta, where it’s still reasonably warm, there are 300 days of sun a year, where you could be renting a duplex penthouse overlooking the harbour and where the tax rate is just 15%.
Bloomberg has a long article extolling the virtues of Malta today. It points out that while governments such as the UK’s are trying to reduce their dependence on financial services, Malta wants to increase the significance of its financial sector. The Maltese government has set a goal for 25% of GDP to come from finance by 2015.
Accordingly, the number of hedge funds in Malta increased 30% last year. Bloomberg says that: ‘at least a dozen large U.K. hedge funds and funds of hedge funds have shifted part of their operations’ there.
One of the people who's moved to Malta is Paul Keegan, a senior analyst at emerging markets hedge fund Finesterre Capital. Keegan spent 10 years working in London, 7 of them at Blackrock, before moving to Malta with his wife and two young sons in November 2010.
“With a young family, we decided that life outside of London was more appealing,” Keegan told Bloomberg. He added that it's possible to get British TV channels and newspapers in Malta and that he and his wife are building a house there. In London they lived in a 2 bedroom apartment.
Meanwhile, among Asian hedge funds: “People’s stamina will increasingly give out; regardless of your commitment and personal wealth, the number of years that you can go pursuing your dream without any kind of compensation is a stretch.” (Bloomberg)
Reuters calculates that 125,000 financial services jobs were earmarked for the axe last year, although the losses will be phased over the next few years. (Guardian)
Societe Generale plans to cut some 880 jobs at the French unit of its investment bank as part of a "voluntary departure plan." (Reuters)
Nick Clegg promises to clamp down on bonuses. (Telegraph)
The French and Germans have determined that a transaction tax will be in place by the end of this year. (Telegraph)
Asian applicants to US business schools have been hiring proxies to write essays or take entrance exams. (Wall Street Journal)
What do you write in an internship cover letter to an investment bank? (Quora)
Gordon Brown has been earning up to £62k a speech. (Financial Times)