As we pointed out earlier today, Citigroup appears to have done little to increase its salaries, yet as a TARP-recipient has nevertheless succeeded in hiring people. Now Forbes goes some way to explaining why.
Citi has apparently been paying some very generous guaranteed bonuses to people joining its equities and equity derivatives division. Among the recipients are said to be Rachel Lord, an executive in the equities group, and Stefanos Bitzakidis, the global head of exotic equity derivatives. Forbes says the two received a total of roughly $3m in guaranteed bonuses to join Citigroup from Morgan Stanley. Guarantees are said to have been dangled in the direction of other joiners too.
Risk managers not deciding pay just yet. (Clusterstock)
Lots more writedowns to come. (Pragmatic Capitalist)
This is no time for banks to be repaying TARP. (Felix Salmon)
Dick Bove: US banks should get rid of TARP. (CNBC)
More stress tests for US banks if the recession deepens. (FoxBusiness)
US wants tougher stress tests in Europe. (Wall Street Journal)
UBS said to be in talks about repaying the Swiss state. (Bloomberg)
Another senior Merrill banker makes an exit. (Bloomberg)
Deutsche Bank to open soon in China. (Bloomberg)
Commerzbank is putting Kleinwort Benson, and its 680 employees, up for sale. (Evening Standard)
Tweet about wine for $10k a month. (CNBC)
Free botox for the unemployed. (Reuters)