City Of London

Banks Face a Fresh Bonus Cap Battle — With Their London Traders

  • Return to unlimited bonuses and lower salaries problematic
  • US firms may move first, while UK banks may struggle: experts
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Banks complained for years about the UK’s bonus cap. But now the government has pledged to scrap it -- triggering a political backlash -- most are silent.

With the new rules potentially coming into effect in a year’s time, lenders have yet to say whether they will abandon existing pay arrangements that saw salaries jump after the introduction of the cap.