Firm Tells Staff That It Will 'Deal With' UK Bonus Tax

Calm down

The New York Post reports that Barclays President Bob Diamond has told his staff not to worry about the UK bank bonus tax.

According to the newspaper, Diamond reassured some investment bankers in a recent conference call that staff would be paid 'competitively', and that they were not to worry as Barclays intended to 'deal with' the situation.

In the meantime, The Times reports that the UK government looks set to close a loop-hole that could have resulted in Rothschild and other banks that pay bonuses after April avoiding the bonus tax. According to the newspaper, Rothschild doesn't actually pay bonuses until June, but is resigned to being included in the scheme, which at the moment applies to bonuses paid before 5th April 2010. The government is now likely to extend the scope of the scheme.

And The Financial Times reports that Tullett Prebon, one of London's biggest money brokers, have offered its entire broking staff financial assistance in the event that they wish to relocate from Britain to avoid penal rates of taxation. A spokesperson for the firm said: 'The board has concluded that it is in the best interests of shareholders to respond to requests from desks to relocate out of the UK, and we will seek to facilitate, where possible and appropriate, relocation to the company's other offices around the world, which have more certain tax regimes'. The Evening Standard reports that Tullett rival ICAP 'hasn't ruled out' a similar initiative.

Over in the US, The New York Times reports that the Security Police and Fire Professionals of America Retirement Fund has confirmed that it is suing Goldman Sachs over what it says is the firm's intention to make excessive and improper bonus awards to staff this year-end.

Finally, The Wall Street Journal reports that AIG CEO Robert Benmosche has pointed out that 10 executives who report directly to him lost $168m of their net worth when the firm crashed, and another 5 employees who are currently helping wind down derivatives positions over at AIG Financial Products, lost a combined $88m. Benmosche said that 'they're been pretty much wiped out'.

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