So, as we speculated a few weeks ago, things have been afoot at Citigroup with regards to salaries.

It now emerges that the bank is indeed succumbing to the pressure to pump base pay, and is doing so by may or Merrill Lynch and UBS, both of which appear to have doubled base pay for MDs. And although Dick Bove thinks Citi’s stock can hit $4, making $3 options look appealing, not everyone is so sure.

Brain drain takes its toll at Citi and BofA. (CNN)

Citi is also pleasing staff by replacing its smelly fridges. (Dealbook)

BofA’s B plan in case Ken Lewis leaves. (IDD Magazine)

Banks too “exhausted” to reform bonuses says Adair Turner. (City Am)

"I would question whether [rising pay] is creating systemic risk. Traders have been high earners for centuries.” (Financial Times)

“The unpleasant truth is that, today, the incentive to behave in this risky way is, if anything, even bigger than it was before the crisis.” (Calculated Risk)

Remedies for too big to fail. (Financial Times)

Execution hires from Dresdner. (Financial News)

Cheyne Capital hires Morgan Stanley head of equity prop trading, Jorge Giampaoli. (Hedgeweek)

Severe shortage of female monetary policy specialists. (Bloomberg)

Half Britain’s expats want to go home. (Bloomberg)

Hedge funders are a swine flu risk. (WallStreetandTech)