Uber Technologies has poached three bankers from the technology investment banking group at Goldman Sachs, Reuters reports. The bankers are the latest in long line of bankers leaving Wall Street for Silicon Valley, attracted by stock options and flexible hours. Uber is expected to make an initial public offering in 18 to 24 months and having bankers on staff is a big help with capital raising. Goldman is one of a number of Wall Street banks that have made changes to employment conditions in recent times in a bid to keep junior staff. US Federal Reserve governor Daniel Tarullo said in a Bloomberg TV interview that there was "more than a pretty good chance" that banks would face "some net increase in the post-stress minimum requirements." That has been interpreted in the Wall Street Journal as meaning the biggest banks are likely to need even higher capital levels to pass stress tests, possibly by incorporating the so called "GSIB surcharge" the Fed announced earlier this year for the eight largest US banks. That will make it harder for banks to meet financial-performance targets based on measures such as earning a minimum ten per cent return on equity. Deutsche Bank's new co-chief executive John Cryan told a Frankfurt conference that pay in the banking sector was still too high, and he did not "fully empathise" with people who "say they turn up to work and work harder because they can be paid a little bit more," the FT reports. Cryan also said the structure of employees' earnings should be changed to account for the longer-term impact of their behaviour. Pay arrangements, he said, left banks in the "ridiculous position where the baby's been given the candy and you've got the difficulty of taking it away." In an op ed for the FT in the wake of last week's Bank of England report into the failure of HBOS (the bank formed from the merger of Halifax with Bank of Scotland), former Halifax director John Kay explains why this 2008 failure provides a general lesson for all businesses: the "diversifier fallacy" of expanding operations into areas where the company lacks knowledge or control. In the case of HBOS, its own executives' growth expectations could not be met by what the bank did well - namely, UK mortgage lending and retail banking in Scotland - so they increased market share in unfamiliar areas: corporate banking in the UK and retail banking in Ireland and Australia. Barclays has agreed to pay US$14 million to settle litigation by holders of its American depositary shares that it conspired with rivals to rig the Libor benchmark interest rate, causing its share price to be inflated, according to Reuters. The agreement resolves claims that Barclays "turned a blind eye" before and after the financial crisis when its traders manipulated Libor to boost profits, and that senior management condoned the deception to enhance Barclays' reputation in the