Bank breached duties by cutting bonuses

More than 100 London- based bankers have scored a legal victory against Commerzbank, Germany’s second-largest lender, for slashing their bonuses after huge losses at its former investment banking arm during the financial crisis.

Commerzbank, which has twice been bailed out by taxpayers, said it would seek leave to appeal after High Court Judge Robert Owen ruled it had breached its legal duties by failing to honour about €52m of promised payouts.

The ruling flies in the face of government, public and investor scorn at the size of bonuses paid despite disappointing returns and billions spent by governments on rescuing banks since the 2008 crisis. It could also open the way for disappointed staff to sue other firms over payout disputes.