A third US investment bank has lifted its ban on bonuses for its staff in London ahead of what is expected to be a spate of dealmaking in the City when interest rates start to turn down.
Wall Street giant Morgan Stanley (NYSE:MS) said it would be replacing the EU-imposed two-times salary cap with 'appropriate' internal multipliers.
Rivals Goldman Sachs and JP Morgan have already said they are lifting the bonus limit for staff based in the UK.
Morgan Stanley (NYSE:MS) employs around 5,000 staff in the UK and told the FT” “We continue to pay competitively and reward strong performance.”
Employees based in the EU will still be covered by the salary cap, the bank said.
Now details on the level of bonuses were released by Morgan Stanley, though Goldman’s material risk takers or MRTS can earn up to 25 times and JP Morgan 10 times.
Europe introduced the salary cap to clamp down on excessive risk-taking after the financial crash of 2009, but the UK removed the limits last year to boost the attractiveness of the City.