NEW YORK ( The Deal) -- Talent has been trickling out the doors of some European banks as dealmakers anticipate new regulation that will cap their bonus payments.
Sources say Barclays (BCS) has been particularly affected and suggest Deutsche Bank (DB) may also see bankers walk, with regulation due to come in during 2014 to cap bonuses at fixed pay for staff earning over 500,000 euros ($648,600).
Spokespeople from Barclays and Deutsche declined to comment. The regulation will equally apply to U.S. and Swiss banks where they have offices domiciled in the European Union -- but only affects what is known as "code" staff who take material risks or are in important control functions.
Some European banks plan to raise base pay to offset the cap while some U.S. banks have sought to lift staff allowances in their EU-domiciled offices. Barclays chief Antony Jenkins this week alluded to the impact on bonuses from ongoing scandals around rate swap and payment protection insurance misselling scandals."The
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