Saturday, 05 December, 2009
 | Bankers' bonuses |
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Labour is in a muddle again. This time over its policy on bank bonuses.
First, Labour’s City Minister, Lord Myners claims he will veto big bonuses, but then the Business Secretary, Lord Mandelson, says the banks should be ‘restrained.’ Lord Mandelson said “I understand the point that RBS directors are expressing – they say they have to remain competitive in the market in recruiting senior executives, and this is why it’s important that all the banks are equally restrained, and RBS is not singled out.”
Barely six months ago, Gordon Brown said “We are fundamentally changing the way we regulate our banks. We are banning them from giving bonuses at the moment where we have taken over the banks.” (Hansard, 17 June 2009).
Conservatives are clear - in addition to G20 proposals, no cash bonuses above £2,000 should be paid out this year by retail banks and that money should go towards increasing lending to the families and businesses who propped up the banks in the first place.
Richard
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