According to some reports, Goldman Sachs could move up to one fifth of its 5,000 London-based employees to Spain.

The Goldman Sachs bank, UK’s biggest contributor of revenue in the financial sector, is in talks with the Treasury over the temporary bonus tax announced in the recent pre-Budget report.

Last week, Barclays’ chief executive, John Varley told reporters about the temporary levy of 50 percent on individual discretionary bonuses of over 25,000 pounds could damage the city.