Removing cap on bankers’ bonuses will fuel ‘greed is good’ culture, says TUC

Bankers in the UK can earn unlimited bonuses again, as the cap on bonuses has been removed. The cap was introduced after the 2008 financial crisis, limiting bonuses to a maximum of two times a banker’s basic salary. Its aim was to reduce excessive risk-taking. However, banks responded by increasing basic salaries, which are less flexible to adjust in downturns or for poor performance. The removal of the cap is expected to make the UK’s financial sector more competitive and attractive to international professionals, although it has been criticized for its timing in the face of a cost-of-living crisis.