Government engaged in intensive talks with banks over proposed bonuses

FINANCIAL SERVICES

Government engaged in "intensive" talks with banks over proposed bonuses

David Cameron has insisted that the government has not given up trying to stop banks paying large bonuses.

The prime minster told Today presenter John Humphrys: “We're having, really detailed discussions with Barclays with the other major clearing banks to try and get a settlement on this whole issue. And let me tell you what I want. I want the bonus pools to be lower, I want the taxes that the banks pay to be higher and vitally I want the lending that they do to business, particularly small business in our economy to increase.”

When it was put to him that lavish bonuses would still be paid, he insisted this was not "a done deal". The government is trying to reach a settlement with the banks, and intends to announce details in the next few weeks.

Want to know more?

Listen to David Cameron’s interview with John Humphrys on BBC Radio 4’s Today programme, 17 January 2011: http://news.bbc.co.uk/today/hi/today/newsid_9363000/9363744.stm.

>>> A detailed analysis summarising the current position in the ongoing development of the new global regulatory framework for remuneration in financial service firms will be published next month in e-reward’s paid-for subscription series, e-research.