Cameron to consider defending city against bonus cap

Speaking at a press conference in Riga, Latvia Prime Minister David Cameron said:

We have major international banks that are based in the UK but have branches and activities all over the world, and we need to make sure that regulation put in place in Brussels is flexible enough to allow those banks to continue competing and succeeding while being located in the UK. So we’ll look carefully at what the outcome of the negotiations was before working out the approach we’ll take at Ecofin next week

RBS chief executive Stephen Hester has said in an interview with ITV news that if "if you don't have a level playing field economic activity will shift to where the playing field is more level". The cap could see the top traders move to New York or Singapore, leaving the UK poorer for it.