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U.K. Bankers Face Decade Bonus Delay and Criminal Sanctions
Key Excerpts from Article on Website of Bloomberg/Washington Post
Posted: July 9th, 2013
http://washpost.bloomberg.com/Story?docId=1376-MOLK2O07SXL10...
Senior employees at U.K. banks may face a 10-year wait for bonuses under proposals put forward by a committee investigating the failures of the industry, which also recommended making reckless management of lenders a crime. The Parliamentary Commission on Banking Standards' ... proposal to introduce a criminal offence for mismanagement, which could see executives of failed firms facing jail time, was endorsed by Prime Minister David Cameron. The potential rewards for fleeting short-term success have sometimes been huge, but the penalties for failure, often manifest only later, have been much smaller or negligible, the authors of the report said. "Performance should be assessed using a range of measures rather than just return on equity, which creates perverse incentives, the committee said. "Taxpayers have bailed out the banks. The public have the sense that advantage has been taken of them, that bankers have received huge rewards, that some of those rewards have not been properly earned, and in some cases have been obtained through dishonesty, and that these huge rewards are excessive, bearing little or no relationship to the value of the work done. The committee recommended introducing an offence for reckless misconduct and potential prison time for bankers found responsible for the worst mismanagement, the first such sanctions."
Note: For a related article in the London Review of Books, which starts "the blame in Spain falls mainly on the banks as it does in Ireland, in Greece, in the US, and pretty much everywhere else too," click here. For more on financial corruption, see the deeply revealing reports from reliable major media sources available here.
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