RBS' results digested badly throughout the day, with the stock finishing down by 6.60 per cent. News that Osborne has meddled heavily in decisions the bank has to make hasn't helped matters.
(Source: Yahoo! Finance)
The bank's chief executive Stephen Hester spoke of unlevel playing fields, but didn't have his own opinion to give on bonus caps. He said he hadn't looked into the issue. That seems unlikely, but few have been willing to defend the rights of banks to decide how and how much they pay employees. But analysts have made the case that the EU's new rules would increase risk while Boris Johnson warns that they would be the worst thing since Emperor Diocletian fixed agricultural prices in the third century.
Some bankers might leave the UK, and we might also see top talent move to hedge funds and private equity. The real danger is that when banks can't reduce bonuses in bad years, they will reduce staff numbers instead. The EU's rules probably won't make banking more robust, but it's likely that we will see more redundancies.
Gold prices on a losing streak
London Whale not responsible for Lehman Bankruptcy
Lloyds' PPI costs to hit more than £6.5bn
Portugal and Ireland may get more time on EU loans
Osborne interfering with RBS
More strong data from US
Monte dei Paschi rescued by Italian government
EU officials try to calm fears about Eurozone
US growth revision sees positive end to 2012
Fall in international students could damage Britain's prospects
Cameron to consider defending city against bonus cap
Lunch Round-up - 28/02
Political meddling into RBS will hurt the taxpayer
EU bonus cap could force redundancies
Eurozone inflation approaches target
McKinsey warns that stagnation could be here to stay
Analysts say new EU bonus caps could increase risk
ONS sees net migration to UK fall
IBEX slumps on dire Spanish data
RBS slips on news of huge losses
From the Paper - 28/02
Bad news for RBS compounded by EU ruling
RBS privatisation is the "light at the end of the tunnel"
FTSE 250 Results Round-up - 28/02
FTSE 100 Results Round-up - 28/02
Morning in the City - 28/02