US banks dim the lights on bunfights

Goldman Sachs is scaling back its annual hedge fund conference, holding it in New York rather than the glitzy occasion it had planned at a Miami resort.

"In light of the current environment, Goldman decided to reschedule the conference," said spokesman Ed Canaday. The event was originally scheduled for two days next month at Miami's Fairmont Turnberry Isle Resort & Club.

Meanwhile, Morgan Stanley, which was the second-biggest US securities firm after Goldman before it too became a bank, has cancelled "recognition" trips for top-producing brokers in 2009.

Other financial institutions including AIG and Wells Fargo have ditched corporate events set for resort locations as politicians demand an end to the high life at companies being rescued by taxpayers.

The Goldman decision was announced after President Obama said he was capping fat-cat pay at $500,000 (£346,000), branding lavish bonus payouts at banks getting rescue funds "shameful".