SURPRISE: Crisis Altering Wall Street as Big Banks Lose Top Talent. “According to the banks and executive recruiters, hundreds of bankers have been jumping to Deutsche Bank and Credit Suisse, neither of which took a government bailout. They see a rare chance to upgrade talent and standing on Wall Street — and globally — by luring top minds who would not have considered moving from a Goldman Sachs or a Morgan Stanley in flush times. Now that their rivals must accept compensation limits and other restrictions that come with the use of taxpayer support, the foreign banks are finding more eager takers.”

UPDATE: Exodus of Top Bankers Bad News for the Taxpayer.

ANOTHER UPDATE: Reader Stuart Wagner writes:

As someone who left a major Wall Street IB (First Boston) to start a private boutique, I believe you will see a larger exodus towards that model rather than for other large investment banks. Small, privately-owned advisory firms that can earn large fees with little capital and far less oversight. We became a major force in M&A and public equity underwritings in our sector with only $8 MM in capital (we sold out to Merrill Lynch in 2006).

We’re going back to the 1920s and the era of partnerships and private capital. Pubic capital markets are over-regulated now and it will get worse. Restricting access to capital is bad for growth, but good for those who are already wealthy because they will get their pick of the best opportunities and earn higher returns.

A lot of “reform” seems to be mostly good for those who are already wealthy.

MORE: Barney Frankonomics.