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Top City watchdog Adair Turner today warned that a return to "business as usual" at UK banks threatened to undermine the lessons of the "biggest financial crisis in the history of market capitalism".
Lord Turner, chairman of the Financial Services Authority, said he was concerned about "aggressive hiring" by banks and excessive pay deals being offered to attract new staff.
His warning came just a day after part-nationalised Royal Bank of Scotland approved a £9.7 million pay package for new chief executive Stephen Hester.
RBS also awarded Nathan Bostock, its new head of restructuring and risk, 1.18 million shares worth £463,000 when he joined the bank earlier this month.
The pay deals, Hester's in particular, were widely condemned by politicians and unions but Turner refused to comment when challenged by MPs on the Treasury Select Committee today.
But asked if the City was returning to "business as usual" on pay and bonuses, he said: "I've some concerns that may be the case.
"I do have some concerns that we may see a more rapid return to risky trading activities than we had anticipated... There is a real danger we don't seize the opportunities of this crisis."
Reader views (1)
Little wonder its is back to business as usual. Thanks to the Government's inability to regulate the only ones punished for the banking catastrophe were UK taxpayers and all those dependent upon them.
- Brian Edmonds, Farnham UK, 24/06/2009 10:53
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