Fox Business reports that Carlos Araya, a former trader at The New York Mercantile Exchange, is now working as a Maitre'D at the Palm, a New York steak house he used to visit as a guest.

As electronic trading came more to the fore at the Exchange, Araya found he was out of a job. After 18 months struggling to find steady work, Araya ended up at the Palm, on a salary of $25,000 (down from the $200,000 he used to earn at the Mercantile). The fall in income has forced the former trader to make economies (the kids' ballet classes went, cable TV was cut back, vacations are a thing of the past, as is eating out). Araya is an optimist, however, and has adjusted well to his new work environment (he has been at the restaurant for 6 months). And the future ? He hopes to learn the business, and one day open his own restaurant.

In the meantime, Bloomberg reports that HSBC Investment Bank is to stop extending structured financed products to hedge fund investors as it scale back on its risk profile. The move is said likely to result in a unspecified number of job losses in New York.

The news agency also reports that UBS is in talks with the Swiss government about repaying the $5.5bn it received in state aid. A stock sale to raise the funds is a possibility.

And The Financial Times reports that US mutual fund BlackRock looks like paying up to $13bn in cash and stock to acquire Barclays Global Investors. The deal would be the largest ever in the asset management industry.

The Wall Street Journal reports that two more Bank of America Directors have stood down. Patricia Mitchell and Jackie Ward have resigned, as the bank beefs up its board by adding former financial markets / services regulators and individuals with banking experience.

Finally, The New York Times reports that, according to the index of monthly returns compiled by Hedge Fund Research, the hedge fund industry returned to form in May. The average 5% gain seen last month made May one of the best-performing months in hedge fund history.

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