A Financial Services Bill will offer tough new powers to City regulators to tear up bankers' contracts if they include excessive pay and bonus deals.
In an upbeat podcast on the Downing Street website, Mr Brown said Britain had a "bright future" ahead of it after the economic difficulties of the past year.
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Chancellor Alistair Darling said the Financial Services Authority would get new powers to stop bankers pocketing big bonuses.
There would also be powers to cancel pay packages which rewarded undue risk-taking.
Legislation to be unveiled on Wednesday will also enable the FSA to require banks to renegotiate remuneration packages which breach its pay code.
Banks that continue to offer unjustifiable sums face being fined by the regulator.
What to say? This is simply mental. Even if we ignore the fact that this will not avert any future financial crisis there is still a shed load of things wrong with this.
First, it's just one big up yours to anyone working in the banking sector. They could have only made it worse by saying, "Take all your money and expertise and .... ... to Singapore with Jim Rogers..."
However, what is much more worrying about this is the precedent it sets. If the Government can set the wages of Bankers what's to stop them doing the same for other private sector workers?
Well, if we look at all the other precedents breeched by this Government -- for example RIPA -- nothing at all.
Seriously, if you have a decent amount of capital behind you and some skills just leave this country. Because I think they're just hitting nails into the coffin for fun now.
3 comments:
Papers that masquerade as libertarian (i.e. Daily Mail) are extremely responsible for fuelling and adding credibility to moves like this with "Fred the Shred" headlines and outrage on tap.
I remember their commentariat being extremely for those "tough new anti-terror laws", not once thinking it may end up being abused by spying councils and the dustbin police. Or other assorted innocents...
People are never careful what they wish for, are they.
Agreed Soundbite. The approved board of a publicly listed private company agrees a contract with private individual. That has NOTHING to do with the state.
It's swings and roundabouts. They will do this, but they won't split the liability of risk for high street and investment. I can't possibly think why.
Tinkering. Bankers can only do the nefarious things the public hate so much because we have currency monopoly based on the fractional reserve banking. A free market with unsound monopoly money isn't free at all.
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