Jaws dropped in the City of London today, when Liberal Democrat leader Nick Clegg said it was time to cap cash bank bonuses at £2,500 (€2,836) a year, with incentives in excess being paid in shares which could not be sold for five years.

Not to be outdone by himself, Clegg went on to tell the BBC that bank board directors should be banned from receiving bonuses altogether. He demanded that loss-making banks should not be allowed to pay bonuses.