January 28, 2009

For bankers, the prospect of getting a big check at the end of 2009 was already bleak. Now it is a whole lot worse: Politicians have declared a war on bonuses.U.S. President Barack Obama has indicated that further support for banks will be dependent on ending the bonus culture.

French President Nicolas Sarkozy has offered state aid to banks if executives skip extra rewards.In the U.K. and Switzerland, where financial institutions form a larger part of the economy, big banks will have to find ways to limit compensation.