More populist nonsense on the bonus issue this weekend. As easy as it might be to attack bonuses in speeches, it is unlikely to have the desired effect on systemic financial risk or votes, in practice.

Lord Myners, the City Minister, claimed yesterday that allowing the regulator to render void some contracts would prevent excessive risk-taking from threatening the stability of the financial system. “We’re seeking to de-risk the system”, he said. Right, it’s that simple.

Apart from the fact that the rules will not be retrospective, they are unlikely to stop bankers getting their hands on the cash one way or another. And they are equally unlikely to remove the risk.

That there are already a raft of measure that can be used by the FSA to prevent excess on the remuneration front says this latest soundbite is just one for the voters.

However, bonuses will get paid this season anyway and the contrversey will rear up despite such noises. So weary voters are unlikely to be convinced.

What it might do is damage London as a financial centre as bankers get fed up with the sabre rattling and move elsewhere.

More Top Stories

• Bankers, Hotpants and Stilettos
• Expert in Spreadsheets Required
• Female exec sues for £4m in sex discrimination case
• Fools Gold?
• Speculation that acquitted Bear guys may start new hedge fund
• Bank of England – Rebuilding Britain or Blowing a Big Bubble
• Goldman’s Spirited PR Offensive