Whilst the industry (Bankers) reel over having bonuses clawed back, I begin to ask myself if they really understand the responsibility that they hold?
Making decisions on fixing rates, mis-selling policies and underwriting loans without understanding the underlying risk are all the sorts of activities that got us to where we are now (Lloyds increased its PPI provisions by another £600m today). They are
all the sorts of activities that paid good bonuses.
Is the proposed treatment too harsh though?
Whilst there have been a slew of regulatory and legislative sticky tape applied since 2007, this one has the underpinnings of something that would reflect good working practices and the benchmark for where the industry should be.
It does appear that the Monk need not worry just yet.
If you're suggesting that bankers are criminally responsible for "fixing rates, mis-selling policies and underwriting loans", then the fact that not a single one of them has been criminally indicted for the GFC proves that the hitherto "Objective and evidence
based approach" hasn't worked. Maybe it's time to explore new ways of bringing them to book - as they say, you have to break a few eggs to make an omelet.
© Finextra Research 2014