Mergers and acquisitions bankers may lose out on their bonuses in order to subsidise their peers in fixed income, credit, foreign exchange and commodities, who are set for reduced bonuses after sub-prime writedowns according to new research.

One banking source said UBS had tried to reallocate the bonus pool of its European investment bank in a move that would have seen the mergers and acquisitions department subsidise other divisions. The source added: "The M&A guys pushed back and UBS saw there was a risk of people leaving."