Comment on Does the bonus cap work? by Daniel Measor

Interesting and important to consider this very politicalised question in terms of the evidence. I think it is a mistake to assume remuneration policy is the only driver (or mitigant) of risk taking. However, I think it is undeniably true it is a relevant consideration. While much is written about how variable remuneration has migrated to fixed remuneration, and how this creates an higher fixed cost base for the banks potentially making them more risky (unable to respond to down-turns in revenue