US foreign exchange market braces for bonus downturn

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NEW YORK -- The recent slump in investment banking could hit FX paypackets this year, with some US investment banks looking to slash bonuses by up to 30% compared with last year’s figures, industry recruiters in New York told FX Week.

While FX trading revenues have remained steady at most US banks this year, difficult market conditions have affected total investment banking earnings. And, when profits fall, bonuses are the first thing to go, said the recruiters.

"Some firms are even introduc