Reckless Bank Chiefs Could Be Sent To Jail
Bank chiefs like Sir Fred Goodwin who ‘broke’ RBS should be punished states Mr Hancock
5:03am UK, Sunday January 08, 2012
The Treasury stated a new offence of corporate negligence was among options being considered to punish reckless bankers.
Tory MP Matthew Hancock, a close ally of Chancellor George Osborne, told the Mail on Sunday it would target those who could be considered “negligent or grossly negligent in their conduct”.
A Treasury spokesman stated it would consult on proposals in the spring but that “all options are on the table” including the creation of a criminal offence.
The shadow of prosecution will concentrate the minds of those entrusted with institutions of vital national importance.
Tory MP Matthew Hancock
Tougher punishments for bankers who took too many risks were called for by the head of the City regulator last month after its investigation into the near-collapse of RBS.
Adair Turner, chairman of the Financial Services Authority (FSA), spoke out after it took no action against the bosses of the part-nationalised bank.
While RBS chief executive Sir Fred Goodwin and his team had made bad decisions they had not broken any existing rules, he said.
RBS was brought to its knees and had to be rescued by the taxpayer
Mr Hancock, previously Mr Osborne’s chief of staff, is due to set out details of the proposed changes later this week in a speech to the Policy Exchange think-tank.
It comes on the eve of bonus season in the City and amid growing pressure to see high earners held properly to account.
“Those who put our large banks at risk…should be held to account, just as with those who destroy property or endanger the health of their fellow citizens,” Mr Hancock is expected to say.
“Sir Fred Goodwin broke one of Britain’s biggest banks, yet walked away with a large pension. I want to see a law which makes it possible to prosecute executives for serious financial recklessness.
‘I would hope such legislation would never have to be used. But the shadow of prosecution will concentrate minds of those entrusted with institutions of vital national importance.”
source : news.sky.com
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Submited at Monday, January 9th, 2012 at 12:00 am on Business by jessica
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