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PM targets City's rule-breakers in 'short, sharp' Queen's Speech
Paul Waugh, Deputy Political Editor16 Nov 2009
A crackdown on City risk-taking, bonuses and fraud will be a key plank of Gordon Brown's pre-election Queen's Speech, it emerged today.
Whitehall sources have told the Standard that the Financial Services Authority will get powers to punish individuals as well as companies if they break the rules. It will be allowed to discipline those who perform key "control" functions, rather than just fining their employers.
In a bid to harness public anger at bankers' pay, the measures will give the FSA a new legal right to "tear up" employment contracts if they encourage excessive risk. The Financial Services Bill will also give the FSA Japanese-style p owers to suspend a firm from trading in certain areas.
The Prime Minister will attempt to turn around his poll ratings with a "short, sharp" Queen's Speech aimed at highlighting political divisions with the Tories on the economy, health and education. There will also be plans to provide free elderly home care for about 350,000 of those most in need.
Wednesday's speech, which could be as short as 20 minutes, is expected to feature fewer than a dozen major Bills. With just 40 sitting days left at Westminster before the election expected next May, many measures have been dumped or included as draft Bills.
One Bill that has apparently survived concerns internet piracy, with sanctions against those who illegally download music or movies. The Tories dismissed many of the plans as "window dressing" and Lib-Dem leader Nick Clegg called for the event to be scrapped. Mr Clegg said Parliament should use its remaining days before the election to push through emergency reforms to "clean up politics once and for all" after the MPs' expenses scandal.
The plan to rip up banker bonuses prompted warnings today. The British Bankers Association said nothing must "set the UK at a disadvantage", while lawyers Herbert Smith said the FSA could face legal challenges.
Reader views (2)
And will it introduce the charge of Treason for future Chancellors who steal money from hard-saved pension funds and who announce to the world several months in advance that they intend to sell off the country's massive gold reserves, just be sure the market knows it will be flooded so they are sold at rock-bottom price . . . ?
- Roz, France, 17/11/2009 09:25
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Doesn't Brown realise that no-one in the country listens to politicians who wobble on about bonuses and fraud, when most of the MPs in this country have been caught with their hands in the till (and pants around their ankles in Mr Jacqui Smith's case).
- Nobby Clark, Perth, the Scottish one, 16/11/2009 11:51
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