G20 meeting rejects plan to cap bonuses-papers

Bankers blamed for the global financial crisis will see their pay packages limited under a blueprint for steering the international economy towards recovery, according to the Independent.

But a new 'clawback' scheme means they can be forfeited if deals later prove unsuccessful.

Finance ministers from both rich and developing countries failed to agree a controversial French-German plan to impose a cap on the amount financial sector workers can receive in bonus payments in future. Full story........

THE BANK OF ENGLAND may introduce negative interest rates for the first time in British history this week, reports the Telegraph.

The Bank is moving to stop institutions keeping the extra money created by quantitative easing and, instead, lend more.

City analysts suspect the Bank may consider cutting the interest rate paid to banks on their reserves with the central bank in an effort to stop institutions hoarding the extra money created by quantitative easing and increase lending. Some think it may even introduce a charge for holding a certain amount of cash with the Bank. Full story.....

A LEGAL CHALLENGE to threatened limits on the sale of the controversial payment protection insurance (PPI) will be heard on Monday, according to the BBC.

In January, the Competition Commission recommended that next year lenders be stopped selling PPI when granting a loan, or for seven days afterwards. But Barclays bank lodged an appeal with the Competition Appeal's Tribunal (CAT) in March.

The consumers association Which? says Barclays should back off.

"PPI has been widely discredited, so it's important that it's sold separately from other financial products to help consumers make informed choices about how best to protect their finances," says Which? chief executive, Peter Vicary-Smith.  Full story.....