Posted 10/24/2023, 3:20:00 PM
UK Scraps EU Banker Bonus Cap, Sparking Backlash Amid Cost of Living Crisis
- Britain scraps cap on banker bonuses inherited from EU, signalling divergence from bloc's financial rules post-Brexit
- Cap was introduced in 2014 to curb risky behavior that led to 2008 financial crisis and taxpayer bailouts
- Regulators say cap has just led to higher fixed salaries; removal will aid London's competitiveness vs New York
- Unions criticize move as "obscene" and "insulting" amid cost of living crisis
- Shift away from bonus cap will likely be gradual; other curbs like bonus deferrals remain in place