The Daily Telegraph reports that banks are offering pay packages worth more than £200,000 a year to recruit staff to handle the compensation of small business customers mis-sold complex interest rate derivatives by their investment banking arms.
In the meantime, Reuters reports that hedge fund manager John Paulson, whose biggest funds are posting double digit losses for the second year in a row, reiterated in a conference call on Tuesday that his bets on gold will pay off while also acknowledging that current returns are disappointing, two people who listened to the call said.
Paulson spoke on a conference call with Bank of America financial advisors and their wealthy clients late on Tuesday.
And Bloomberg reports that Morgan Stanley’s David Barrett, who oversaw a unit that raised money for hedge funds and private companies, is leaving after 22 years to look for a job outside banking, two people with knowledge of the matter said.
Barrett ran the New York-based firm’s private capital markets business, where he reported to client-solutions head Wylie Collins and equity capital markets co-heads John Moore and Paul Donahue. Barrett is considering positions at several hedge funds, said one of the people, who asked not to be identified because the information hasn’t been made public.
Finally, Reuters reports that French banks BNP Paribas and Credit Agricole are conducting internal inquiries into U.S. dollar payments to check whether they are potentially in breach of American sanctions, the banks said earlier this week.