RBS is now officially allocating 325bn of investments to the UK government's Asset Protection Scheme. Analysts say those assets will need to be valued, either by independent entities, or by people employed by the government. "The interesting bit is that some people who have been at the source of these problems could end up being employed to value these assets so that the can be insured," says Mamoun Tazi, an analyst at MF Global. Marcus Sephton, a partner in KPMG's risk and regulation practice confirms that they're "already doing a lot of work in that area." Will they need to hire anyone extra though? Unfortunately he can't say.
Government's 'economic interest' in RBS could rise to 95%. (Guardian)
20,000 jobs might go over 3-5 years. (Financial Times)
"Global banking and markets will discontinue all illiquid proprietary trading activities and correlation trading in equity and credit markets. It will drastically scale back activity in structured real estate, leveraged and project finance, and exit lending in these areas entirely." (Financial News)
Merrill will be a thing of beauty. (Bloomberg)
Ken Lewis is insane. (Businessinsider)
The gargantuan Merrill pay bubble. (Zerohedge)
How partnership compensation used to work at Goldman. (NakedCapitalism)
Yes, but did complex trading instruments contribute to human welfare? (Alphaville)
Deutsche Bank's quant team breaks out on its own. (FinAlternatives)
John Costa goes boutique. (Financial Times)
UBS credit banker reinvents himself as a risk expert. (Bloomberg)
Deutsche COO reinvents herself as a headhunter. (Russell Reynolds)
Bankers don't really have girlfriends. (Alphaville)
Yes, The Government, you get a 50% cut of all that bonus money. To which I say "THE GOVERNMENT, HOW DARE YOU ACCEPT SUCH EXORBITANT PAY! YOU ARE RECKLESS! AND YOU DIDNT EVEN SAVE ANY OF IT??? DISGUSTING".