This website londonlovesbusiness.com/kwasi-kwarteng-mulls-scrapping-bankers-bonus-cap/ is currently offline. Cloudflare's Always Online™ shows a snapshot of this web page from the Internet Archive's Wayback Machine. To check for the live version, click Refresh.

City of London office skyscrapers with an orange dawn sky

Malcolm Park / Avalon

Kwasi Kwarteng mulls scrapping bankers’ bonus cap

by LLB Reporter September 15, 2022

written by LLB Reporter 15^th Sep 22 10:35 am

Kwasi Kwarteng, the new chancellor, is plotting a plan to axe Britain’s cap on bankers’ bonuses, the Financial Times reported today.

The cap was introduced after the 2008 financial crash after critics claimed the big bonuses encouraged risk-taking behaviour.

The move to boost the City of London’s global competitiveness, the paper reported.

The boss of Goldman Sachs International, Richard Gnodde, who has claimed that scrapping the bonus cap would “make London a more attractive place for sure”.

Gnodde said that, under the current system: “If I move a senior person between New York and London I am driving up the fixed cost of our operations

“If that rule doesn’t exist, I don’t have to think about that.”