Commission chairman Andrew Tyrie and Tory MP lays out several legislations to stop bank bosses “reckless misconduct”. He suggested that bank bosses receive either a jail sentence or up to 10 years postponement of their bonuses and pension claim. We, the public would even go a step further and stop them from getting any bonuses since they are responsible for bankrupting a bank or other illegal activities. Although they all denied any involvement but it is and was their job as a chief executive. What else are they there for?
At the financial crash in 2007 the public were told at that time it is a “Credit Crunch” which was accepted for a while. After just a short time it emerged that it was the bank bosses and financiers in the City being responsible. They were paid for a “shocking and widespread malpractice”. Not one was jailed or heavily fined. The Libor scandal when it was finally exposed, after years of practice, which surely a number of people were aware of and should have been responsible, not one was jailed or heavily fined or banned from the industry. They were even given a very a golden handshake when eventually resigned due to pressure from the public. The banks were fined heavily but this will eventually be paid by the taxpayers.
Mr Tyrie suggested: “Under our recommendations senior bankers who seriously damage their banks or put taxpayers’ money at risk can be expected to be fined, banned from the industry, or, in the worst cases go to jail. That has not been the case up to now. This deals with some of the senior people who many feel got off lightly last time and for whose mistake we are still paying.”
Mr Tylrie issued a 527 pages report pointing out the completely laps of standard which is too widespread to be acceptable. He also requested that not only the bankers have to change their way of practice. He demands actions on regulators and government because both are responsible for the decline of standard. The commission of MPs and peers calls for a great overhaul of top pay, with City regulators given new power to cancel pension rights and payoffs for bosses of bail-out banks.
This is the most sensible suggestion made for a long time and hopeful it will be enforced. However, looking back at the truck record of the government it is doubtful it will be passed in the House of Commons and Lords. It is also well overdue in view of all the scandals revealed which costs the taxpayers billions of pounds at a time of great economical pressure.
Already it has been included that there will be no retrospect.
Sir Fred Goodwin who ruined the Royal Bank of Scotland receives a £342,000 a year pension for life.
James Crosby chief executive of HBOS receives £580,000 retirement.
John Cridland, director general of the CBI, points out that there are tough criminal sanction already law in the UK. If they are they certainly were not enforced. In the last few years there were o the biggest scandals in bank’s history yet the bank bosses received golden hand shakes which was totally wrong, of course.