Their comments came as the Treasury launched a long-term review of City remuneration and governance.
Mr Brown promised to `sweep aside' the short-term bonus culture in banks and ensure that rewards are provided only for long-term sustainable success, with `penalties' for those who took irresponsible risks.
Leading City figure Sir David Walker has been asked by Chancellor Alistair Darling to examine what went wrong in the management of banks, to spark the credit boom fuelled recession.
His review will investigate `failures of corporate governance by bank boards in several areas', including encouraging risk-taking with bonuses, the skill and experience of directors and failures of monitoring.
But the inquiry was branded a cover-up by critics. Sir David is not due to make his final recommendations until the end of the year.
Tweet
Comments
Login or Register to comment
how come these bonuses are happening? the banks where in trouble. someone hadn't been doing their job properly!
if that was a normal business they'd have been punished or sacked!
so why are they rewarding them?
Gordon Brown proves he has no guts as he should stop bailing them out if they continue to pay people these bonuses!
So Yvette, is there a corresponding moral responsibility for Ministers to forego part of their salary in acknowledgement of that fact that their efforts to encourage debt and stoke up the housing market were responsible for creating the underlying conditions?
Is there also a moral responsibility for MPs not to claim expenses for expenditure which falls within the guidelines, but is not what the system is really meant to cover?
I imagine the answer will be no.
It's not the bonus's its the leverage that's the problem.