Financial Regulatory Forum

FSA says bank bonuses should take account of govt help

October 19, 2009

   LONDON, Oct 19 (Reuters) – Britain’s financial regulator said on Monday banks should consider their wider responsibility to society and “soft” government guarantees that have helped to support them, before deciding on bonus payouts later this year.
   “There is this wider question as to whether, given banks are arguably still in receipt of some form of underpinning, soft guarantee, they should recognise this in their bonus policies,” Chief Executive Hector Sants told BBC Radio 4.
   “Personally, I think they should recognise their wider responsibility to society, they should recognise what has happened in the last few years, and they should recognise that without the interventions made by government and taxpayers around the world, the situation they would be in now would be far worse.”
   He added: “I think it would be reasonable for them to take that into account as they go into their bonus rounds.”
    (Reporting by Clara Ferreira-Marques; Editing by Paul Hoskins)
   ((clara.ferreira-marques@reuters.com; +44 207 542 3214; Reuters Messaging:
     rm://clara.ferreira-marques.reuters.com@reuters.net))
 Keywords: BRITAIN BONUSES/ 
  
Monday, 19 October 2009 08:37:23RTRS [nLJ721378 ] {C}ENDS

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