The Government has thrown its support behind a new report calling for reckless bankers to face jail. But is it right to do so?
Bankers found to have been guilty of reckless misconduct should go to jail.
That’s the suggestion of the Parliamentary Commission on Banking Standards, which has just published its latest report into the banking sector.
The report claimed there was “insufficient personal responsibility” taken by bankers at the most senior levels, with many aware that they could not be banned for what they hadn’t seen, leading them to wilfully turn a blind eye to malpractice.
The Commission called for:
- Changes to the way bankers are authorised, with clear personal responsibilities for senior bankers;
- Recklessly disregarding these responsibilities to be made a criminal offence, with a potential prison sentence;
- A new set of banking standards set by the regulators;
- Deferred pay for up to ten years, with final payout linked to long-term performance both of the bank and the banker’s personal area of business;
- Deferred pay and pensions to be cancellable if a banker misbehaves or the bank is bailed out.
Both the Government and the Opposition have thrown their support behind the proposals, which is no great surprise given the general unpopularity of bankers. But are they right to do so? Cast your vote and have your say in the Comments below.