Pay more in bonuses and let bankers bear the risks

To nobody’s surprise, the UK has dropped its challenge to the European bonus cap, after the European Court of Justice looked set to throw it out. After the UK’s objections were overruled in the drafting of the law, the challenge was a last roll of the dice — a desperate attempt to be rid of the cap by any means necessary. That is a shame because, regardless of how deserved bankers' compensation is — which is surely what should really be debated — the more it is awarded on a discretionary basis, the better for everyone.