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Brown pledges bank bonus clampdown

Prime Minister Gordon Brown has vowed to clamp down on excessive bank bonuses.

In an interview with the Financial Times, Brown outlined tough plans to curb the excessive remuneration that has become widespread in the banking sector. His plans are part of an international drive to rework the banking sector so as to try and avoid future ‘boom and bust’ cycles.

Brown told the FT that he wants banks to base remuneration on long-term achievements. He says financial institutions should also be able to clawback any bonuses if employee’s performance and results had suffered in subsequent years.

He also told the paper he agreed with the recent comments of FSA chairman Lord Turner that the City has become “bloated”, but says any cut backs will not affect London’s standing as a world centre of finance.

Brown also hit out at the Tories in the interview by criticising them for not supporting the “tough measures” that the Government was trying to implement on the banking industry.

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  1. Brown pledges bank bonus clampdown
    Nothing meaningful will happen between now and the forthcoming general election, at which Crash Gordon will be booted soundly into touch and descend rapidly into richly deserved obscurity. And the Tories won’t do anything, at least not any time soon ~ they’ll be too busy with their plans to scrap the FSA and create 3 or 4 new quangos in its place. So the FSA has managed neatly to shuck off its responsibilities to oversee the fiscal prudence of the institutions it’s supposed to but manifestly does not regulate, whilst the RDR will emerge largely unscathed. All will be well down at the Gentlemens’ Club.

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