An end in sight to the banker’s bonuses?

When they can pull themselves away from their framed copies of The Sun, the close of the Labour party conference offers the Conservatives some clear choices on economic policy and the banker bonuses.
 
Despite the Chancellor’s impressive deal with Britain’s top five banks, there are senior voices in the government who wanted to go much further.

The banks will expect that the government will get off their backs, now that the changes to bonus arrangements will apply for this year.
 
However today’s deal puts no limit on the total bonus pot.

And come January and February, near record bonuses will still be announced, against a backdrop of still-rising unemployment and talks of cuts to public sector jobs and pay.

That is why the Tories have a monumental choice on whether to outflank the government on bonus-bashing.
 
George Osborne previewed a possible approach, talking to Jon earlier in the month:
‘It’s about not paying out megabonuses on the back of taxpayer guarantees and taxpayer support that was there to rebuild bank balance sheets, not to support the pay of bankers.

“I’m signed up to coordinated international action on bonuses to avoid international arbitrage,” he said.
 
So some populist bonus-bashing, as well as a move to save scarce taxpayers’ money.

Focussing on the taxpayer-supported banks will appease the free marketeers too. 

This is not the end of bonus politics.