socialmedian: Darling to clamp down on bonuses

Add News Flash

User-submitted headlines for this story

Clips

Darling to clamp down on bonuses

Source: The Guardian

Jul 04, 2009

Summary

High-paying City banks forced to hold more capital

City banks that pay out lavish bonuses for short-term profits will be forced to set aside a bigger cash cushion against losses, Alistair Darling will announce this week, as he sets out the government's plans to crack down on the practices that led to the credit crunch.

With the darkest days of the financial crisis apparently over, bankers in the Square Mile have quietly begun to use the phrase "BAB", or "bonuses are back," to signal their hope that the era of outsize pay packets is returning. US bank Goldman Sachs is expected to pay out the biggest bonuses in its history this year, on the back of bumper profits.

But government ministers have stepped up their rhetoric against the City's bonus culture in recent days, with Lord Myners railing against "weak and lazy" remuneration committees that wave through generous payouts.

As part of measures to re-regulate the banking sector, due to be announced on Wednesday, the chancellor will tell the Financial Services Authority that it must treat banks that pay out large cas

...Read the full article

Comments (0)

Add Your Comment