When Britain left the European Union in 2020, one of the major selling points was that the U.K. could follow its own rules and attract investment by undercutting some of the stricter regulations in place in the EU. Four years later, London-based Barclays became the first British bank to scrap bonus caps for its traders that were meant to curb excessive risk-taking with client cash, improve corporate governance, and restore faith in an industry most working people still hold responsible for 15 years of economic misery. 

 The EU bonus cap had been introduced in the wake of the 2008 financial crisis, limiting bonuses to two times an employee’s annual salary. The U.K.’s banking sector, as well as the U.K. government, have long regarded the 2014 rule as a barrier to attracting and retaining talent.

Andrew Bailey, then in his role as deputy governor of the Bank of England, said the cap was “the wrong policy,” “misguided,” and “not a good solution.” Meanwhile, George Osborne, the U.K. Chancellor at the time, tried to overturn the changes in the EU’s supreme court.