End bankers' bonus culture, says Bury MEP

Date published: 07/07/2010

The European Parliament in Strasbourg will this week vote on a crucial first reading deal on new laws to end the risk taking culture in banking that led to the global economic crisis.

The deal negotiated by Vice Chair of the Economic and Monetary Affairs Committee, Euro MP Arlene McCarthy was reached in a series of talks between the European Parliament, Council and Commission. This will result in new laws on bankers' bonuses will be implemented for the upcoming bonus season.

Speaking in the debate in Strasbourg yesterday (Tuesday 6 July 2010) Arlene McCarthy said: “We have a duty as legislators to respond to the public's concerns by voting in favour of these tough reforms to end the obscene bonus culture.

“At a time when the government is making substantial cuts, scaling back public services and support to families and businesses, our constituents expect banks to prioritise stability and lending over their own pay and perks.

“The banks have had two years since the 2008 financial crisis to do this and have failed to act, so now we will do the job for them.”

Drawing attention to proposals to regulate exceptional pension payments for bankers, which were added to the law by the European Parliament, Arlene McCarthy said: "We have seen bank chiefs walk away from the ruins of their firm with a 16 million pound bonus pot, while taxpayers pick up the bill. These new rules will ensure this can never happen again."