This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.

Clegg calls on banks to show visible restraint over bonuses

  • Print
  • Comment

The Government will intervene if banks pay out large bonuses and do not increase lending, according to the Deputy Prime Minister.

In an interview with the Financial Times, Nick Clegg says banks must appreciate what is happening in the wider economy.

He says: “The banks should not be under any illusion, this Government will not stand idly by. It is wholly untenable to have millions of people making sacrifices in their living standards only to see the banks getting away scot-free.”

Clegg says he wanted to end the tension between banks and Government but banks needed to show restraint and reduce the amount they pay in bonuses in February and March.

He says: “We can’t do that unless we have a cathartic settlement where we see visible restraint from the banks and sensitivity to the context in which they operate.”

He said the threat of a new bonus tax should be held in reserve.

He called on the banks to make quantifiable promises on bank lending to small companies  and to make additional upfront funding for start-up companies available.

The article quotes an anonymous banker saying Clegg’s comments could be seen as a “cynical PR exercise”.

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Have your sayEdit my profile/screen name

You must sign in to make a comment

AXA Wealth

The Budget: What do people really know?

Fund Data

Editor's Pick


Are you happy with the outcome on the Budget guidance adviser levy?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments