Fat City On The Thames

Bonuses at investment firms may shrink profits and boost risk

It's bonus time in the City of London, and at the wine bars favored by hotshot traders, talk of the Magic Envelope fills the smoky air. A 25-year-old equities trader at one upscale hangout says his bonus was three times the size of last year's. He won't say how much he took home, but it was enough to buy a new country house--mostly with cash.

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