Financial Regulatory Forum

Bankers’ pay to be discussed at G20 – UK’s Darling

August 20, 2009

BRITAIN/   LONDON, Aug 20 (Reuters) – British finance minister Alistair Darling said on Thursday the issue of bankers’ pay needed to be looked at on an international basis and would be discussed by G20 finance ministers in September.
   “Banks need to responsible about pay and bonuses and one of the things that is concerning me is that when you tackle banks about this they say that if you do something here, the Americans, the Swiss, or the French … will poach our people.
   “This is something that I think we do need to tackle overall and it will be discussed by the G20 finance ministers in September,” Darling told BBC radio.
   Finance ministers from the Group of 20 leading industrial and emerging nations meet in London on Sept. 4 and 5.
   Britain’s financial regulator the Financial Services Authority (FSA) last week published a bankers’ pay code which some critics said would not go far enough in preventing banks from paying sky-high bonuses to some of their biggest risk takers.
   Darling did not rule out using legislation to try to keep pay and incentives for bankers in check, but said the FSA was “the obvious vehicle to use”.
   “Government has got a legitimate interest in making sure that you don’t encourage behaviour that is damaging, but I think that is just one part of what we need to do to get the banking system going again,” Darling said.
   “There is a generalised concern. What we need to do is make sure that we introduce legislation that actually works, that actually helps and strengthen our banking system.” (Reporting by Peter Griffiths and Kate Kelland. Editing by Mike Peacock) ((kate.kelland@reuters.com; +44 (0)207 542 7947; Reuters Messaging kate.kelland.reuters.com@reuters.net))
 Keywords: BRITAIN DARLING/BANKS 
  
Thursday, 20 August 2009 08:23:18RTRS [nLK413579 ] {C}ENDS

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