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| Brown talks tough on bank bonuses | Brown talks tough on bank bonuses |
| (10 minutes later) | |
| The culture of rewarding bankers for failure and short term gain is being "swept away", Gordon Brown has said. | The culture of rewarding bankers for failure and short term gain is being "swept away", Gordon Brown has said. |
| Labour would "aggressively" pursue action to ensure that future rewards for bankers were based on "long-term success" and failure was penalised. | Labour would "aggressively" pursue action to ensure that future rewards for bankers were based on "long-term success" and failure was penalised. |
| The government is under pressure amid reports RBS Group, in which it holds a major stake, could pay £1bn in bonuses. | The government is under pressure amid reports RBS Group, in which it holds a major stake, could pay £1bn in bonuses. |
| The Tories say ministers' actions have been "inadequate". The Lib Dems say the response has been "pathetic". | The Tories say ministers' actions have been "inadequate". The Lib Dems say the response has been "pathetic". |
| Speaking in London, Mr Brown said: "We are leading the world in sweeping away the old short term bonus culture of the past and replacing it with a determination that there are no rewards for failure and rewards only for long-term success." | |
| "In the future there must be rewards for success - but long-term sustainable success and not just short-term gains." | |
| Earlier, Treasury minister Yvette Cooper said any contractual or legal obligations on banks to pay bonuses at a time when they were making huge losses must be "challenged". | Earlier, Treasury minister Yvette Cooper said any contractual or legal obligations on banks to pay bonuses at a time when they were making huge losses must be "challenged". |
| "We have made very clear that as major shareholders in these banks we won't accept bonuses for failure," she told the BBC. "These do need to be curtailed." | "We have made very clear that as major shareholders in these banks we won't accept bonuses for failure," she told the BBC. "These do need to be curtailed." |
| 'Moral responsibility' | 'Moral responsibility' |
| Senior executives need to take responsibility and consider whether they should be taking bonuses. Yvette Cooper, Chief Secretary to the Treasury | |
| Ms Cooper said there was "a lot to be said" for going down the same route as the US and banning future cash bonuses for bank staff but said bankers should also look to their own actions. | Ms Cooper said there was "a lot to be said" for going down the same route as the US and banning future cash bonuses for bank staff but said bankers should also look to their own actions. |
| "I think there is a moral responsibility on some of these bankers, even if they are legally entitled to take bonuses, at a time when the bank is only still standing because of government intervention and why I think there is an important issue of needing to restore trust in the city, senior executives need to take responsibility and consider whether they should be taking bonuses." | "I think there is a moral responsibility on some of these bankers, even if they are legally entitled to take bonuses, at a time when the bank is only still standing because of government intervention and why I think there is an important issue of needing to restore trust in the city, senior executives need to take responsibility and consider whether they should be taking bonuses." |
| Chancellor Alistair Darling said on Sunday the RBS Group should not reward staff with huge bonuses, but says he cannot rule out pay-outs for some bank staff. | Chancellor Alistair Darling said on Sunday the RBS Group should not reward staff with huge bonuses, but says he cannot rule out pay-outs for some bank staff. |
| The Treasury has ordered a probe into general UK bank management to be led by ex-City regulator Sir David Walker. | The Treasury has ordered a probe into general UK bank management to be led by ex-City regulator Sir David Walker. |
| The timescale of the Walker review has fuelled complaints from opposition parties that the Treasury response was too slow. | The timescale of the Walker review has fuelled complaints from opposition parties that the Treasury response was too slow. |
| Shadow chancellor George Osborne said it was "inadequate" and the review would come "far too late" to do anything about this year's bonuses. | Shadow chancellor George Osborne said it was "inadequate" and the review would come "far too late" to do anything about this year's bonuses. |
| "For senior management, cash bonuses at a time like this for people who have been involved in the higher echelons of a bank is simply unacceptable," he said. | |
| The Lib Dems said that instead of dealing "decisively" with the problem, the government was "playing for time" in order not to upset the banking industry. | |
| "You don't need a review to answer the simple question: should senior bankers receive bonuses? The answer is no," said the party's leader Nick Clegg. | |
| The independent investigation will also look at the pay and bonuses of top executives in the industry. | The independent investigation will also look at the pay and bonuses of top executives in the industry. |
| 'Absolute minimum' | 'Absolute minimum' |
| Under the terms of October's bank-bailout, no board directors at partly state-owned firms will receive any cash bonuses this year. | |
| But the scale of the reported pay-out at RBS, in which the government holds a 68% stake, has caused an outcry and led to calls for an across the board ban on bank bonuses. | |
| RBS has experienced a year of turmoil, and has already flagged up that it will post a huge loss for the past 12 months. | RBS has experienced a year of turmoil, and has already flagged up that it will post a huge loss for the past 12 months. |
| RBS confirmed it was talking to the government about bonuses but declined to comment on any specific numbers, adding that it had contractual obligations to many executives but was trying to do the right thing at the same time. | RBS confirmed it was talking to the government about bonuses but declined to comment on any specific numbers, adding that it had contractual obligations to many executives but was trying to do the right thing at the same time. |
| The bank has said that any bonuses will be dramatically reduced and there will be "no reward for failure in those bits of its business where the losses were concentrated". | The bank has said that any bonuses will be dramatically reduced and there will be "no reward for failure in those bits of its business where the losses were concentrated". |
| Former deputy prime minister John Prescott has said that as shareholders, the public demands that bankers give up their bonuses. | Former deputy prime minister John Prescott has said that as shareholders, the public demands that bankers give up their bonuses. |
| Last week US President Barack Obama announced a $500,000 (£355,000) limit on executive pay at US firms that needed substantial fresh government aid. | Last week US President Barack Obama announced a $500,000 (£355,000) limit on executive pay at US firms that needed substantial fresh government aid. |
| The move follows widespread public anger over the levels of pay on Wall Street, but is not expected to be applied retrospectively. | The move follows widespread public anger over the levels of pay on Wall Street, but is not expected to be applied retrospectively. |