Liberal Democrats plan unilateral approach to bank pay reform

Bankers' bonuses and ongoing attempts to regulate them have returned to the UK political debate this week with the Liberal Democrat policy of restricting banker bonuses paid in cash to an unprecedented low of £2,500 a year.

Lib Dem leader Nick Clegg's commitment to cap "obscene" City bonuses would defer additional compensation arrangements through the redemption of shares given to bankers for five or more years.

"Liberal Democrats will ensure the bonus system can never again encourage banks to