Britain joins France and Germany to demand curbs on bankers’ bonuses, but remains at odds with its EU partners over whether the downturn is over. Faisal Islam reports.
In a surprise move, the British prime minister has teamed up with the French and the Germans ahead of this month’s G20 summit to call for the cap on banks’ total bonus pots – describing some financial institutions’ behaviour as “reprehensible”, despite the taxpayer support they have received.
In a joint letter, the three leaders said bonuses could be limited to a proportion of banks’ earnings – with clawbacks if deals eventually flounder.
Meanwhile, the chairman of the Financial Services Authority has told Channel 4 News that it is now time to take action on the banks.
Shadow chancellor George Osborne and the French finance minister Christine Lagarde joined Jon Snow. Mme Lagarde said: “We have to build an international platform where bonuses are properly framed in accordance with the risk policies of companies.”