Financial reforms will create 'uncompetitive environment'

Paul Kavanagh from the investment firm Killik and co. said that new plans to cap bankers' bonuses will "create a very uncompetitive environment for many banks."

Speaking to Daybreak he added: "Not all pay is irresponsible pay."

As part of a financial reform package, ministers will consider a provisional proposal pushed last week by MEPs and backed by the European Commission.


Osborne bank bonuses talks

George Osborne has left Brussels after meeting EU finance ministers to discuss an overhaul of banking rules in the EU, including a cap on bankers' bonuses.