Belfast Telegraph

Saturday 20 December 2014

Financial regulators urge banks to disclose bonus payouts

A POWERFUL group of international financial regulators has proposed that the payments made by banks to senior management, risk management staff, traders and other "material risk takers" be made public for the first time.

The statement, from the Basel Committee on Banking Supervision, adds significantly to the pressure on the Government to force the British banks to publish details bank bonuses. Over the next few weeks around £7bn is expected to be paid out in bonuses, at a time when the public is being asked to accept benefits cuts, a threefold rise in student tuition fees and a hike in VAT to 20%.

So far the Chancellor George Osborne has resisted calls for the banks to disclose what they pay their top people, arguing for a European agreement first. The Business Secretary Vince Cable meanwhile has said he supports a tax on bonuses as a last resort, and also backs the idea that individual bank staff who earn more than, say, the Prime Minister should have their pay and bonuses revealed. Talks between ministers and the banks on this politically explosive issue continue.

Excessive risk-taking, "off balance sheet" deals and bonuses paid "just for turning up" were almost universally held to be at least partly responsible for the financial crash and the deepest recession in three-quarters of a century which followed it. Regulators have now come up with draft proposals that should represent a united international front in the campaign to restrain the banks from irresponsibility.

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? customercare@belfasttelegraph.co.uk

Comment

More

Company Profiles

More

Help & Advice

More

People on the move

More