The Daily Business Digest

Interfering with bankers’ contracts is a “dangerous route to go down”, a former chairman of Royal Bank of Scotland has told the BBC. Sir George Mathewson said that he thought the Financial Services Authority (FSA) already had enough powers to regulate bonuses. The government plans to give the FSA the power to cancel any pay deals which appear to reward undue risk-taking. But Sir George said he feared the move would interfere with the rule of law. “Interfering with contracts that have been reached between willing participants is a somewhat dangerous route to go down,” Sir George said.