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MPs condemn decision to conceal identity of £1m-a-year bankers
Nicholas Cecil, Deputy Political Editor26 Nov 2009
Ministers came under fire today for allowing bankers paid more than £1 million a year to escape being named.
Shadow chancellor George Osborne accused City minister Lord Myners of failing to see through a pledge to make financial institutions reveal the identity of top earners.
Mr Osborne criticised the Government after a report by former banker Sir David Walker stopped short of recommending naming highly paid employees outside boards.
“The idea being canvassed by Lord Myners that it is important to identify individuals who are high paid is not supported by a shred of evidence of the kind I am interested in,” Sir David told BBC Radio 4's Today programme this morning. Seizing on the comments, Mr Osborne said: “What happened to all that talk from the Government that they were going to disclose people's names?”
During a Commons debate on the economy, he added: “When it comes to the Government and the banks, the public are entitled to ask why the Government talk tough, make promises and then fail to deliver.
“We will hold in mind the Prime Minister's promise that the era of the big bonus is over as we wait to see the bonus payments over the coming months.”
MPs accused the review by Sir David, former Morgan Stanley banker, of failing to be tough enough. Sir David admitted that today's grandchildren will be paying off the “problems” created by the banks.
He also estimated that there are at least 1,000 bankers in the City earning more than £1 million a year.
The Liberal Democrats attacked the report, arguing that all bankers earning more than the Prime Minister's salary, of £197,000, should be named. “There is no justification for withholding information on individual high-end employees from the public or shareholders,” said the party's Treasury spokesman Vince Cable.
Reader views (28)
its not just the bankers who are responsible for this crisis: its also the POLITICIANS !!!
We should have a right to know how much they earn, especially the high earning politicians, and it should also be public if they run another business and not concentrate on their duties!
Isn't it time, that they all should be allocated a council flat in westminster instead of claiming 2nd homes allowances?
- Simple, london, 27/11/2009 00:41
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Why are these Bankers being protected, what is there to hide? Surely listing the salary and name allows us to appreiate where money is being spent. We have invested and we are Customers. we now deserve being given the information after saving many of these private companies? We need real tough regulation. This is more important that MP's expensives and involves far more.
- Robert Griffiths, Ferndown England, 26/11/2009 18:59
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What is the point in publishing names, what will happen next---- NOTHING
- Dc, Swinton GM, 26/11/2009 14:07
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Joe Public borrowed too much from High street banks NOT investment banks. It is bad lending to retail customers which fueled a property bubble on a massive scale and which has bust the banks. It is the taxpayer bailing out the taxpayer not the banks!! It is amazing to read the utter ignorance of posters on this site. Had the BOE raised capital ratios when they saw the property market over heating and forced banks to hold ever increasing amounts of capital to back their mortgage lending then they would have helped prevent this crisis. Furthermore if they forced them to hold a higher proportion of their mortgages on their own balance sheets it would have slowed the rate of securitization of mortgages which is where a lot of the current credit crisis cancer lurks! The BOE and the FSA had the power to do this but failed utterly to do so. No one at either institution has been fired? Why not? The depressing thing is the only thing to be done is a quasi witch hunt on the highly paid, how pathetic. There has been no analysis of how this credit crunch evolved, the lessons learnt and how to effectively tackle the issue in the future. The answers are blindingly obvious but have not been implemented so this will happen again. In the mean time the morons in Westminster are rapidly destroying the City and with it the last industry in which the UK has any real global leadership or significant position. Great own goal from a corrupt failed Noo Labor regime.
- James Macleod Ritchie, Oyster Bay Cove, 26/11/2009 13:43
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Until parliament is expunged of the expense-quaffing fraudsters, no-one in Westminster is in a position to preach about the finances of bankers.
- Nobby Clark, Perth, the Scottish one, 26/11/2009 13:34
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Quite right Paddy from London; it was partly down to peoples greed that monies were obtained at an unaffordable basis. But who was it who lent it in the first place to achieve huge bonuses? See how this was done on an even greater scale,where banks 'actively' hyped up the benefits to even unemployed people, on the high streets of America.
Finally Sir David Walker has done his usual job on behalf of the financial sector with his contacts in business and society. Did you really expect any other kind of report? As he said in the past "a punitive report would drive all the 'talent' out of the country".
By the way- the same talent that has got us where we are today. Whatever would we do without such 'talent'. "They could go to another country and earn even more" we are told. Let me ask you, would 'you' employ them if you saw their CV and their ability to drive your multi-billion pound company to bankruptcy.
- Ron Johnson, Abbey Wood, 26/11/2009 13:25
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Why on earth would I want to know the names of 1,000 bankers earning over 1million a year - what good would this do? NOTHING
- K, London, 26/11/2009 13:11
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Why should a person be stripped of basic rights to Data Protection and privacy, just because they work in a certain industry ? Is "Bash-a-banker" attitude driven by jealousy ? These days it is fashionable to label every banker as "Greedy Fred Goodwin", this is as discriminating as labeling all "Blondes as dumb".
- Anita, London, 26/11/2009 12:57
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This should be between the shareholders and the bankers.I.as Joe public could not give a damn what these bankers earn,I never voted for them and have no shares in any of the banks.I do have a right to know what our MPs earn,as I pay their salaries.Soar grapes on our MPs faces.They can solve the problem by introducing a maximum wage,after which earnings are taxed at 95%.
- Dave, london, 26/11/2009 12:53
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Interesting that it is City bankers who seem to be the focus of anger - probably more to do with how much they earn rather than how much they were to blame for the mess.
This group of people are only partly to blame (and some more than others) - but has everyone forgotten where the bad loans originated?....in the High Street! - local bank managere lending money to people who could never afford to repay it - and people borrowing money they would never be able to repay (unless they believed the hype about the value of assets being on a one way trip to infinity!).
Those basic errors and the greed and 'I want it now' attitude of 'the man in the street' were the building blocks of the current crisis. Not investment bankers in the City or Wall Street.
'Credit Crunch' is not a modern phenomenon - it happens every 8-10 years and always after the financial system has been handing out cheap credit to those foolish enough to overextend themselves.
- Paddy, London, 26/11/2009 11:53
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What a disgrace,As they have taken billions from us tax payers to fund there bonus culture and grossly exaggerated salaries,and also by there ineptitude brought on the worse recession in living memory it would appear they are not qualified to receive such generous renumeration,How total failures such as the likes of Fred Goodwin and the rest can really expect us not to not question how they justifie such large sums is beyond the imagination of any sane person.When people wake up and the revolution begins can i wield the Axe!
- Kev, London-UK, 26/11/2009 11:42
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Roz, France:
"Tax payers have the right to know what Civil Servants, MPs and managers at the BBC earn because they pay for it, but demanding to know who earns what in a private capacity..."
You obviously forgot that this is not a 'private capacity' any more. Taxpayers are owners of several large banks, and are heavily subsidising most of them.
- Alex, London, UK, 26/11/2009 11:40
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Real life Monopoly.
- Stan Hopgood, London, 26/11/2009 11:35
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The government should also impose the same ruling on the BBC who recently pledged that "they will not disclose the salaries of their celebs". It is about time BBC is made accountable on how much of our public money is spent on talentless pleb presenters and wasteful programming.
- Anybodyoutthere, London, 26/11/2009 11:32
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It is ridiculous to name those eaarning over £1m and typical of ignorant MPs to make such a suggestion.I am not in the banking industry, but if MPs want to destroy the industry, they are going the right way about it by scoring so many own goals. Banking is a global industry and any regulation should be done on a global basis. Yet again MPs have shown how naieve, ignorant and out of touch they are. We have seen they are incapable of filling in their own tax returns, managing House of Commons affairs, understanding the Iraq and Afghanistan wars, the plight of our soldiers, the misery and over taxed way we have to live, the ever increasing stealth taxes, education , health etc etc. In short a bunch of waisters who need to resign or get a grip.There are so many capable people who could so easily replace them.
- Jose Luis, London SW18, 26/11/2009 11:32
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If I was a million plus earner I wouldn't want my name made public - as I wouldn't want my name made public if I won the lottery. Then you are left open to unscrupulous people who may want to kidnap your relatives and hold them for ransom, black mail you etc. Surely people have a right to privacy.
It is one thing for regulators to have the information it is another for peoples personal finances to be in the public domain - I am sure the MP's would agree with that as they fought so long and hard to keep their personal finances out of the public domain.
- Janine, London, 26/11/2009 11:30
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I really don't see why the identities of City bankers earning over £1m should be disclosed. It is none of my business. The problems in the City stem from a complete and utter lack of regulation. It's no use crying out now for the stable door to be shut when the horses have long since bolted. And as for the MPs making most noise about bankers bonuses... hmmm is that the green eyed monster showing it's ugly. What a bunch of hypocrites.
- Goggs, London, 26/11/2009 11:16
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- James, City of London
"If you want a return on your money, you must pay for the best"
Correct, but we also seem to be paying full whack for the many cowboys within the financial industry.
- David, London, 26/11/2009 11:03
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The problem was not "created by the banks" the problem was created by lack of regulations in place. There were no complaints when the banks were making money and the government was making money by collecting taxes, PAYE and NI payments which people seem to forget. Now the MPs are bleating because of lack of transparency. What we want is some transparency from this government instead of the constant smoke and mirrors and obfuscation. Any why are they having an enquiry into Iraq when Whitehall has been given the right to block documents. Farcical and an insult to every serviceman / woman in this country.
- Patricia, LONDON, 26/11/2009 10:31
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You know I remember a time when MP's wanted to have their expenses suppressed. they voted for their own committee to handle expenses and they voted for a Speaker to decide upon those expenses, I understand that just 4 corrupt MP's are going to be prosecuted for their blatant over-claiming. Of course, we know that many more MP's should be in the firing line and in the demands of justice, we expect it.
Think of this MP's are elected to serve the people by representation. We expect them to obey the law to the letter and we expect them to be honest to a higher level than all others because we have placed we trust them to right by the people they represent.
On the other hand, Bankers are placed in a position by investors, that’s pension funds and the person with a savings account to maximise their investment and bring a measure of interest to that account so the savings or investment is increased. Every pound invested that attracts an interest is a vote in favour of greed. Investors can choose to hold their own money in the form of cash or invest in 'no-interest accounts'. In essence, those who invest for profit expect bankers to be greedy and driven by money, that’s the job you employ them to do.
If you want a return on your money, you must pay for the best. MP's are a bit rich calling fort this considering the amount they have invested in interest bearing accounts and property.
- James, City of London, 26/11/2009 10:16
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Shame they cant explain to people just how the 'star' traders and deal makers REALLY make their money
If people knew how much front-running,insider trading, market 'mis-hits' and general client rip off really goes on they would demand much tighter regulation
good luck to the Bankers who can screw clients and bluff bosses who are more concerned with performance tables than to really understand how the profits are really made
- Anon, london, 26/11/2009 09:49
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One thing is for sure. The public will NOT support any further bail out of the banks with tax payers money...But then as we have seen, tax payers money will just be used secretly to keep these discredited institutions going...No doubt with no strings attached.
- Mark H, London England, 26/11/2009 09:38
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A greedy breed like MPs should not be trying to put its own citizens at risk by deflecting the limelight from their own problems. In naming high earning bankers it will not help anybody except a few miscreants who practice the arts of Burglary and Kidnap.
- Alexis Dogilewski, London England, 26/11/2009 09:32
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If the likes of the BBC refuse to tell us how much the luvies are being paid with public money, why should private individuals be exposed?
- Frank, Home Counties, England., 26/11/2009 09:29
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?! Why should private individuals have their incomes published? EVERYONE in the UK is rich compared to most of the rest of the planet: why this culture of inverted snobbery and classic Labour if-I-can't-have-it-neither-can-you? Tax payers have the right to know what Civil Servants, MPs and managers at the BBC earn because they pay for it, but demanding to know who earns what in a private capacity is just the precursor to rabble-rousing.
It sounds like a Salem Witch Hunt by the MPs, who are trying to divert attention away from their own misdeeds and who haven't got the balls to outright regulate the banking industry they so lauded when it seemed to be paying for all their crazy extravagences of the last decade. They're exposed in their nakedness and feel foolish because they are: stop passing the buck!
- Roz, France, 26/11/2009 09:28
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It's another 'announcement of plans' which will amount to nothing and is merely another populist move that detracts from both the Iraq inquiry (government withholding key documents) and MPs expenses (i.e the burying of bad news).
Ultimately, other than the Scottish banks we have all bailed out (with the help of a Scottish Government), companies in the private sector will not have to comply (why not oil or gas company execs?).
- Hansel, London, 26/11/2009 09:17
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surprise surprise, did we really expect anything different from the banks.
- Mr S.Port, London, 26/11/2009 09:11
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Shame these MPs were not so vocal when it came to their expenses and declaring them. Hypocrites.
- Jk, Kent, 26/11/2009 09:06
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