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ClimateNE & Climate Change Schools Project support the move to a low-carbon, resilient economy and help businesses avoid risk and realise commercial opportunities. Posts by Jen Atkinson, Krista McKinzey and Harriet Thew » DESPITE the worst financial crash the world has seen in decades, City bankers are still being paid top brass to play Russian roulette with investors' hard-earned cash.
Last year the industry was roundly condemned after its outlandish risk-taking led the global economy to the brink of collapse.
Chancellor Alistair Darling, riding on a wave of public anger, promised to get tough with the banks by clamping down on massive pay-outs for traders.
So far his sound and fury has been backed up by precious little action - until now.
Last week he warned he was prepared to legislate to curb City bonuses - a vote-winning move that will nonetheless put Britain's status as a global financial centre under threat.
He's understandably keen to show voters that lessons of the past have been learnt - difficult to believe amid reports that five commodities traders have been offered a bonus-heavy package worth up to ã30m.
But limiting pay would be short-sighted policymaking that would do more harm than good to Britain's struggling economy.
It would be extremely difficult to police and deter foreign talent from flocking to these shores.
Overseas investment banks have taken advantage of the City's generous tax breaks to make mega-bucks for Britain's economy (and themselves). Capping bonuses would give them an excuse to up sticks and leave.
Legislation is required but it should aim to stamp out unnecessary risk-taking instead. There is nothing wrong with making millions as long as risk assessment checks have been carried out.
Banks should be forced to be more transparent with their reporting and hold sufficient levels of capital to hedge against risk.
And if their investment arms are successful, their traders should be rewarded handsomely.
Making money is no dirty business, especially in a recession when every penny counts.
If Darling decides to cap bankers' pay he will face the wrath of business groups and kill the competitiveness of the City.
In that context, his vote-winning strategy could turn out to be political and economic suicide.
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