Derivs - People and Markets

Deutsche Bank is paying cash bonuses on a sliding scale depending on the size of an employee’s bonus.

Roger Liddell, ceo of LCH.Clearnet, warned the House of Lords European Union Sub-Committee on Derivatives this morning that clearing houses may need access to central banks funds if they blow through member capital and guaranty pool money.

Royal Bank of Scotland is gearing up to launch a UCITS III-compliant fund in April that will give investors delta-one exposure to the Gotham U.S. Enhanced Value Index.

Bank of America has hired Karen Reynolds, a former executive director in equity derivatives sales to private banking clients at JPMorgan.

American International Group has hired industry veteran, Peter Hancock, the former head of derivatives at JPMorgan, to oversee finance, risk, audit, investments and strategic planning. He will also head up AIG Financial Products in Wilton, Conn.

Luca La Feta, a senior structured credit salesman at UniCredit Markets & Investment Banking in London, has left the firm and joined boutique derivatives and securities dealer Conduit Capital Markets.

Bank of America has moved Kwee Tee Lim from the firm’s London office to Hong Kong to run structured credit trading for Asia Pacific, a new role at the bank.

The majority of Economic and Monetary Affairs Committee members at the European Parliament and officials at the Internal Market and Consumer Protection Committee, are supporting Michel Barnier as the European Commissioner for Internal Market & Services.

Players trading derivatives claims against the Lehman Brothers estate have come up with a variety of structures to tackle how the bankruptcy court will value the contracts.

The Chicago Board of Education has settled its dispute with Lehman Brothers over whether it has to make payments on an open interest-rate swap by netting amounts owed and switching the swap counterparty to Goldman Sachs.

Bank Hapoalim equity index trader Justin Egan resigned last week, fueling ongoing speculation as to the equity derivatives desk’s future.

Some U.K. financial institutions are considering paying cash bonuses into offshore trusts set up for employees to get around the newly imposed 50% tax on bonuses over GBP25,000 (USD39,465).