Britain's Financial Services Authority may have watered down its pay code after bankers whinged about losing talent, but it has been using moral suasion to good effect, calling bosses to express its displeasure at the re-emergence of guaranteed bonuses.

ECONOMIST: Wall Street's new shape

The system is currently overseen by the British Bankers' Association, but is not formally regulated by the Financial Services Authority or Bank of England.

BBC: Barclays