All of the talk has turned out to be talk and nothing more. The government is trying to claim limited victory with a story about the banks agreeing to lend more to small business but that’s what they were all supposed to do when they were rescued from complete collapse. The banks then used the money to do whatever they needed to do to pump up bonuses. Lending money to small business is never going to generate the same amount of profit (and bonus) as gambling, so don’t hold your breath this time either.

BBC:

One senior banker told our correspondent there “could be more spin than substance” in any commitments the banks make to reduce bonuses.

Royal Bank of Scotland may pay nearer £1bn in bonuses than last year’s £1.3bn, while Barclays may pay less that the £5bn-£6bn in total remuneration that its results from the first nine months of last year suggest are due to its investment bankers, our correspondent said.

But even if bonuses are cut, salaries have risen significantly to compensate, by up to 40% in some cases, he added.