Reuters reports that the start-ups are expected despite the unimpressive performance of other new ventures and questions about where they will find new capital to finance them.
New rules banning U.S. banks or those with U.S. subsidiaries from risky but potentially profitable proprietary trading are also encouraging some traders to make the move.
Mitt Romney's U.S. presidential election defeat means little chance of the wider regulatory bill being repealed, as he had promised.
'If you consider what's going on for (banks) at the moment from a compensation point of view, plus the increase in regulation and impediments to expressing risk...then working at a hedge fund looks like a compelling option at the moment', said David Barenborg, a portfolio manager at BlackRock Alternative Advisors.
Hit the link below to access the complete Reuters article:
Job cuts, regulation push bankers toward hedge funds
Jury out in London trial of ex-UBS trader Adoboli
Barclays told to hand over more names in UK Libor case
image: © Dan4th Nicholas
The Alchemists: Three Central Bankers and a World on Fire
Hubris: How HBOS Wrecked the Best Bank in Britain
