Brown hails the end of bankers’ bonus culture

British Prime Minister Gordon Brown called time on Monday on the current culture of big bonuses for City of London bankers. “The old short-term bonus culture is gone"....

Written by AFP | London | Published:February 10, 2009 1:30 am

British Prime Minister Gordon Brown called time on Monday on the current culture of big bonuses for City of London bankers. “The old short-term bonus culture is gone,” he told a conference in London. “No rewards for failure,rewards only for long-term and sustainable success,the old bonus culture removed and a new culture that rewards sustainable success brought in.”

Brown said that board members of British banks who have received state help would not receive cash bonuses this year,while banks would not pay or receive dividends either.

But the situation seems to be different among more junior members of staff,including traders.

Chief Secretary to the Treasury Yvette Cooper told the BBC on Monday that some banks had “legal obligations they can’t get out of” to pay bonuses. But she added that bankers at firms which received state help had a “moral responsibility” to forego their bonuses. Finance minister Alistair Darling said on Sunday that the government will hold a review of whether big bonuses lured bankers into taking excessive risks which triggered the credit crunch. He was expected to give more details on Monday.

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