What do you think of Osborne’s bank bonus proposal?
Shadow Chancellor George Osborne says British retail banks should be stopped from paying big cash bonuses and use the money instead to support new lending.
“I am today calling on the Treasury and the FSA to combine forces and stop retail banks — in other words the banks that lend directly to business and families — paying out profits in significant cash bonuses,” Osborne said during a Reuters newsmaker event.
“That includes their investment banking arms.”
As the Conservatives begin to set out their platform for a general election due by June, they are looking to bolster Osborne as the person who can lead Britain out of recession. Bank reform is high on the political agenda.
Despite governments injecting trillions of dollars into distressed banks to prop up the global economy, some banks are preparing to step up bonus payments.
That state of affairs has angered consumers, who face high service charges and receive low interest rates.
What do you think of Osborne’s bank bonus proposal? Does it go far enough?