Bankers defend themselves after Osborne attack

The British Bankers' Association (BBA) has come out fighting following a stinging attack on the financial services industry by shadow chancellor George Osborne.

In a keynote speech, Mr Osborne called on the Treasury and the Financial Services Authority (FSA) to stop retail banks and their investment arms paying out significant cash bonuses to its staff in high-level London banking jobs.

Mr Osborne suggested the cash should instead be used to support new lending.

But the BBA said that UK bankers had already shown their commitment to tighter regulation by agreeing to the FSA's new rules on bonus payments earlier this month.

"We have always said that bonuses need to be tied to the long-term success of the business and cannot reward undue risk taking," said a statement by the organisation.

It added that it believed those working in the financial sector had already proved their total and unequivocal commitment to this principle.

Updated: 28 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.