Reuters reports that Blessing said: 'It would be appropriate if excessively high pay would narrow again towards that in industry', Blessing said, adding however, that any bank that took the first step to curb pay risked losing talented employees to rivals.
In the meantime, Bloomberg reports that Citigroup, Goldman Sachs and UBS were sued separately in New York over losses on $368.7m in mortgage-backed securities.
The three banks made 'material misrepresentations' about the loans backing the securities and about the transfer of the loans into trusts, according to filings today in New York State Supreme Court.
UBS was sued by Sealink Funding Ltd. over $158.1m in bonds.
Finally, The Daily Telegraph reports that Royal Bank of Scotland shareholders who are threatening a £3.3bn lawsuit against the lender and its former directors have been dealt a blow after a US court dismissed similar allegations that the bank misled investors.
In a ruling late on Tuesday by Judge Deborah Batts in a New York district court found that there had been no 'material' mis-statements or omissions and dismissed the case 'in its entirety'.