Darling ready for battle on bonuses

CHANCELLOR Alistair Darling will put himself on a collision course with City bankers this week, with the release of a white paper on regulation that will seek aggressive curbs on remuneration.<br /><br />The chancellor&rsquo;s vision of a new regulatory system, which could be unveiled as soon as Wednesday, will not include changes to the tripartite structure of the regulatory system.<br /><br />But Treasury sources said that&nbsp; the paper would &ldquo;leave no stone unturned&rdquo; when it came to cracking down on the bonus culture.<br /><br />Darling said yesterday that banks had &ldquo;behaved in a kamikaze manner&rdquo; and had not understood the risks involved in some of the products they traded.<br /><br />His white paper will include measures to force banks which pay out bonuses based on short-term targets to hold more capital than their rivals.<br /><br />More radical proposals, such as splitting retail and so-called &lsquo;casino&rsquo; investment banking, have been rejected, according to Treasury sources.<br />Some City banks are about to reveal healthy bonuses.