"As we have seen over the last few weeks, the banks seem to think it's business as usual and today it looks as though the FSA thinks this too.
"These watered down plans send out entirely the wrong message to an industry which is already forgetting that just a matter of months ago it had to come with its begging bowl to the taxpayer.
"The regulator had a real opportunity to assert its authority but at the first sign of dissent from the banks it has capitulated.
"This also shows the total lack of authority of the Prime Minister who talked tough on bonuses in the spring, but now he is on his summer holiday, the FSA has shelved his plans.
"It's all very well gnashing your teeth and beating your chest when things go wrong but if you are toothless at the start then you are on a hiding to nothing."
