Government lodges legal challenge of EU banker bonus cap

The government claimed that the proposed new rules, which will put a cap on bankers' bonuses at 200% of their basic salary, will undermine stability in the banking system rather than promote it. It alleged that European legislators had failed to properly assess the impact and supporting evidence of such a cap, arguing that it would lead to an increase in fixed salaries for bankers. A Treasury spokesperson said: "Britain has been at the forefront of global reforms to make banking more responsible, including big reductions in upfront cash bonuses and linking rewards to long-term success...