Lord Myners to caution investment banks on bonuses
by Gill Montia
Lord Myners has invited the heads of investment banks with large operations in the UK to a meeting at the Treasury.
The Financial Services Secretary wants banks such as JP Morgan, Goldman Sachs, UBS and Morgan Stanley to moderate bonus payments due at the end of the year.
Speaking to The Sunday Telegraph, Lord Myners indicated that he would be urging investment banks to take up the commitment already made by some of the UK’s High Street banks.
The example was set last week when Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Standard Chartered announced that they would abide by the limits on bonuses agreed at the recent G20 summit.
The undertaking includes using deferring payments and bonus claw-backs as a means of linking the payouts to the long-term profitability of a financial institution.
According to reports, discussion at the Treasury will also include proposals for “living wills” whereby large banks would develop strategies for their businesses to be wound up rather than face a Lehman Brothers style collapse.