In the US and Europe, public anger at the size of bonuses awarded to bankers has boiled over. Plans by Barack Obama, US president, for a $500,000 (£338,000) cap on boardroom pay at American banks that accept large sums of public money to shore up their battered balance sheets is encouraging other governments to consider action. Despite crippling losses, many of the world’s biggest banks, including those that have received state aid, still plan to pay out annual bonuses in coming weeks to high performers – albeit at reduced levels.

Why has the row erupted over bonuses?