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Clegg plans bank bonuses crackdown

Source PA News

Updated on 13 April 2010

Liberal Democrat leader Nick Clegg has unveiled plans to crack down on "obscene" bankers' bonuses, warning there would be "no reward for failure".

Mr Clegg said he wanted to see a change in the City of London "as fundamental as the Big Bang of the 1980s".

Under the Liberal Democrats, all bonuses over £2,500 would have to be paid in shares and there would be no bonuses at all at board level.

Any loss-making financial institution would not be allowed to pay discretionary bonuses.

And the names of all bank staff who have pay and bonuses greater than the Prime Minister's salary - just under £200,000 - would be published.

At a press conference in London, Mr Clegg said: "I want to see fundamental reform to Britain's banks. Only by transforming the banking industry from top to toe can we start to build a new economy.

"I make no apologies for the fact this will mean big changes in the City of London. I want to see a change as fundamental as the Big Bang of the 1980s, for the better, not the worse.

"I want to focus on one particular issue: bankers' bonuses. They have become symbolic of the culture of greed and excess that dominated the City in the build-up to this crisis. We have a five-point plan to finally bring the bonus culture in banking under control."

He added: "Liberal Democrats will ensure the bonus system can never again encourage banks to behave recklessly.

"Ultimately our plans to break up the banks and make the banking industry more competitive will bring an end to the excess profits of the investment banking system and the massive bonus payouts that come with it."

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