Nick Clegg warns banks of bonus crackdown

| September 21, 2010

Deputy Prime Minister, Nick Clegg, has today warned banks over their excessive bonuses, suggesting the coalition Government will take very serious action if they a�?pay themselves unjustified bonusesa�?.

Speaking to BBC Radio 4′s Today programme, Mr Clegg said: “Clearly, if the banks pay themselves unjustified bonuses, we reserve the right to take very serious action on that.”

Asked if that was a warning, he replied: “Of course it is. I think it would be not in their interests at all, socially or economically, for them to be starting to award themselves (big bonuses).”

He continued: “I think it is very important that the banks understand that you cannot possibly award yourself ludicrous sky-high bonuses in an industry that has been bailed out by the taxpayer when those same taxpayers are now having to make very serious sacrifices in their own lives.a�?

The subject of bonuses has been a major topic throughout the world for some time now.

Bonuses have sparked public outrage since many argue that excessive bankersa�� bonuses reward the risk-taking culture that led to the financial crisis.

However, the British Bankers Association (BBA) warned that further taxes could damage Londona��s reputation as a global financial centre.

It said: “The UK is a major international financial centre and to remain in that position we need to attract and retain the top people and that means paying global market rates.”

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