This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7877161.stm
The article has changed 6 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Treasury probes bank management | Treasury probes bank management |
| (20 minutes later) | |
| The Treasury is to launch an independent investigation into how banks are managed, chancellor Alistair Darling has said. | |
| The investigation will also examine the pay and bonuses of top executives. | The investigation will also examine the pay and bonuses of top executives. |
| Mr Darling said he "understands people feel angry about excesses of bank bonuses and that directors have a duty to behave responsibly". | Mr Darling said he "understands people feel angry about excesses of bank bonuses and that directors have a duty to behave responsibly". |
| The comments come as banks prepare to announce bonuses paid to leading executives amid the financial crisis. | The comments come as banks prepare to announce bonuses paid to leading executives amid the financial crisis. |
| One of the key issues that will be examined in the review is the extent to which financial incentives encourage bankers to take risks. | |
| Bonus controversy | Bonus controversy |
| The investigation is being put into place at a time when many of the country's banks are receiving financial help from the taxpayer, BBC business correspondent Joe Lynam said. | The investigation is being put into place at a time when many of the country's banks are receiving financial help from the taxpayer, BBC business correspondent Joe Lynam said. |
| RBS, which was bailed out to the tune of £20bn by the government last year, will pay up to £1bn in bonuses to its 177,000 staff, the Sunday Telegraph has reported. | RBS, which was bailed out to the tune of £20bn by the government last year, will pay up to £1bn in bonuses to its 177,000 staff, the Sunday Telegraph has reported. |
| RBS confirmed it was talking to the government about bonuses but refused to comment on any specific numbers - adding that it had contractual obligations to many of its executives but it was trying to do the right thing at the same time. | RBS confirmed it was talking to the government about bonuses but refused to comment on any specific numbers - adding that it had contractual obligations to many of its executives but it was trying to do the right thing at the same time. |
| I just think we've had such a cathartic experience that it can't be business as usual John McFall,House of Commons Treasury committee | |
| John McFall, a Labour MP and chairman of the House of Commons treasury committee, welcomed Mr Darling's move. | John McFall, a Labour MP and chairman of the House of Commons treasury committee, welcomed Mr Darling's move. |
| "There's some people in the financial services industry who consider that they can just keep their heads down for a couple of years, then things will resume as they were. I just think we've had such a cathartic experience that it can't be business as usual. | "There's some people in the financial services industry who consider that they can just keep their heads down for a couple of years, then things will resume as they were. I just think we've had such a cathartic experience that it can't be business as usual. |
| "And if the government is establishing this and ensuring that boardrooms are looked at, that the role of non-executives is looked at, that corporate governance is looked at very very seriously, then that can help." | "And if the government is establishing this and ensuring that boardrooms are looked at, that the role of non-executives is looked at, that corporate governance is looked at very very seriously, then that can help." |
| On Thursday, Prime Minister Gordon Brown insisted there should be "no reward for failure" at banks which have had to be bailed out by the taxpayer. | |
| Earlier, Business Secretary Lord Mandelson sent a direct warning to RBS, saying the bank risks alienating ordinary people if it gives its executives "exorbitant" bonuses. |