Let’s get this right. The government thinks the EU bonus cap is barking mad because its imposition will heighten financial instability. Banks will merely whack up base salaries, thereby inflating their fixed costs and creating bigger risks, especially during a crisis. This analysis is shared by the Bank of England. And the government feels so strongly that it is fighting the cap in the European courts. . .

http://www.theguardian.com/business/nils-pratley-on-finance/2014/apr/25/bonus-cap-treasury-rbs-pay

The European Central Bank (ECB) has today published the SSM Framework Regulation for the Single Supervisory Mechanism (SSM). The SSM Framework Regulation lays the basis for the work of the SSM when it takes over as supervisor of euro area banks in November 2014. This is an important milestone in the set-up of the SSM which is being delivered as scheduled. . .

http://www.ecb.europa.eu/press/pr/date/2014/html/pr140425.en.html

http://www.ecb.europa.eu/press/pr/date/2014/html/pr140428.en.html

The U.S. Justice Department is investigating whether a  Citigroup  unit in California failed to alert the government to suspicious banking transactions along the U.S.-Mexico border that in some cases involved suspected drug-cartel members, said people familiar with the probe. . . .

http://hereisthecity.com/en-gb/2014/04/11/citigroup-said-facing-inquiry-over-suspicious-transactions/

The Government could start selling down its stake in Royal Bank of Scotland   this year, according to City analysts, after the taxpayer-backed lender   agreed a deal with the Treasury that could lead to the return of dividend   payments. . .

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10758823/Treasury-could-cut-RBS-stake-following-dividend-deal.html