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Cable: New bonus clawback plans a 'positive step'

New rules which could mean rule-breaking bankers having their bonuses taken away are a 'big positive step', said Business Secretary Vince Cable.

The regulations will make bankers operate 'more responsibly' he said.

Vince Cable welcomed the new rules on bank bonuses.
Vince Cable welcomed the new rules on bank bonuses.

" I don't think anyone would have a quarrel with this. We have suffered enormously from the collapse of the banking system. We need to have a system of penalties in place to make sure this doesn't happen again," Dr Cable added.

Bonus clawback 'will only be active from 2015'

Rules allowing regulators to claw back bonuses will only come into effect in 2015, an industry regulator has announced.

The Bank of England's Prudential Regulation Authority said trying to apply the new rules retrospectively would mean many firms would be "open to challenge" from employees.

"In order to ensure a consistent and even application of the clawback requirement across industry, the final rule requires the application of clawback only to awards made on or after 1 January 2015," the PRA said.

Read: Barclays boss: Bonus clawback 'extremely useful'

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Barclays boss: Bonus clawback 'extremely useful'

The chief executive of Barclays has welcomed plans from the Bank of England to punish misbehaving bankers by clawing back bonuses.

Antony Jenkins told Radio 4's Today programme: "The process of clawback can be extremely useful. We’ve applied it ourselves, for example, in cases where we’ve got things wrong."

Mr Jenkins said there should be "appropriate punishment" for both criminal misconduct and "recklessness" on the part of bankers.

Read: Bank of England plan to 'claw back bankers' bonuses'

Bank of England plan to 'claw back bankers' bonuses'

Misbehaving bankers could be forced to repay bonuses from previous years under plans set to be unveiled by the Bank of England, according to the BBC.

Bankers in London's financial hub could have to repay bonuses from previous years.
Bankers in London's financial hub could have to repay bonuses from previous years. Credit: Chris Radburn for Glasgow 2014

It could mean bonuses paid out as long as seven years ago being returned, even if they were paid in shares and have already been cashed and spent.

The BoE had already warned in March that bankers could face clawbacks for "misbehaviour", including if their bank registered big losses.

Reports at the time suggested bonuses from up to six years ago would be at risk, though that appears to have been extended to seven years.

Another previous suggestion had been to cancel promised bonuses, but the Bank's position appears to have hardened.

Read: Bank bosses to face shareholder fury

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BNP Paribas to pay £5.2bn for breaking US sanctions

BNP Paribas pleaded guilty to two charges. Credit: Reuters

Banking giant BNP Paribas has agreed to pay £5.2 billion for evading US sanctions on Iran, Cuba and Sudan.

The French company pleaded guilty in New York state court to one count of conspiracy as well as producing false business records.

BNP Paribas were accused of transferring billions of dollars on behalf of clients in countries blacklisted by the US.

One of the prosecutors said BNP engaged in a "long-term, multi-jurisdictional conspiracy" to breach laws in deals involving Sudan, Cuba, and Iran.

George Osborne plans 'to build 200,000 new homes'

George Osborne pictured tonight at Mansion House.
George Osborne pictured tonight at Mansion House. Credit: Reuters

The Chancellor George Osborne has tonight set out "radical" planning reforms designed to help build up to 200,000 new homes.

The controversial proposals, announced during his annual Mansion House speech, would see councils forced to pre-approve brownfield sites for housing developments.

Mr Osborne also said it was important that the Bank of England was able to act "independently of politics" and take action by itself with new legal powers, to help fix Britain's housing market.

These were expected to be in put place by the end of next May.

"I want to make sure that the Bank of England has all the weapons it needs to guard against risks in the housing market," the Chancellor said.

"I want to protect those who own homes, protect those who aspire to own a home, and protect the millions who suffer when boom turns to bust."

Ed Balls responds to Chancellor's mortgage plans

Labour's shadow chancellor Ed Balls said:

George Osborne is still failing to tackle the root cause of the housing crisis which is that we are not building enough homes to match rising demand.

Over the last few years Labour has repeatedly called for action on housing supply, but the Chancellor has failed to act.

Under this government housebuilding has reached the lowest peacetime levels since the 1920s.

You can't deal with the cost-of-living crisis and create a strong and balanced recovery without building more homes.

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