• IS provokes sea-change

    It has been a grave mistake to defy both Russia and France, says Leopold Scholtz.

  • Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

All data is delayed
See More

Global banks warned to rein in bonuses

Nov 15 2012 07:11
London - Britain's top banking supervisor has warned banks operating in the country to claw back staff bonuses this year to reflect the damage caused to the sector by high-profile scandals in the past 12 months, the Financial Times reported on Thursday.

Andrew Bailey, head of the FSA's prudential business unit, wrote to bank chief executives in October warning them that it would be looking for evidence they had "clawed back" deferred bonuses from people involved in scandals.

The newspaper did not disclose the names of any banks that had received Bailey's letter.

Britain's banks have been rocked by a series of scandals including interest rate rigging, breaches of anti-money laundering requirements and the mis-selling of loan insurance and complicated interest rate hedging products.

Bailey also urged banks in his letter, sent to British and global institutions with a presence in the country, to consider firm-wide bonus reductions to account for the impact of the scandals, the FT said.

"Ex-post risk adjustment will be a major area of focus in our 2012 review of the firm's remuneration policies. Firms should also forfeit or reduce current year's bonuses if appropriate," the FT said, citing Bailey's letter.

bonuses  |  banks


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote