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George Osborne attacks 'unacceptable' City bonuses

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Large City bonuses should be outlawed in banks that have received any sort of government guarantee, according to the shadow chancellor, George Osborne.

 

In an interview with the Guardian, Osborne delivers the strongest attack yet on the bonus culture, suggesting that a future Conservative government would act to curb pay excesses across the financial services industry.

 

"It is totally unacceptable for bank bonuses to be paid on the back of taxpayer guarantees," he said. "It must stop."

 

His remarks appear to cover much of the British banking system, and not just institutions that have been partly nationalised such as Royal Bank of Scotland and Lloyds. Most have benefited from programmes such as the Bank of England special liquidity scheme and various lending guarantees that have together put an estimated £1.2tn of public money at risk to support the banking system.

 

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George Osborne attacks 'unacceptable' City bonuses | Business | guardian.co.uk


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