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.

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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.