Big plans to limit banker bonuses in the UK won’t amount to anything, according to Bloomberg.
Government sources say the government will ask only that banks “take into account a need for restraint, and explain how they are responding to popular anger over pay without illustrating where or by how much pay will be cut.”
The “Project Merlin” compromise follows plans to up the tax on bank balance sheets by $1.3 billion this year. The government is also asking bankers to increase lending.
In other words, this is a compromise where banks get to spend more by agreeing to spend more.