Paul Myners backs City bonuses
Despite the fact that Paul Myners, the City minister, has been attacking the UK financial sector and bankers in particular for some months now he has added his weight behind the argument for bonuses and attractive remuneration packages in the City!
It seems that the UK government is attempting to backtrack on recent comments and recent regulatory suggestions which would effectively devalue banking bonuses and with the likes of Lloyds bank and Royal Bank of Scotland, where UK taxpayers have large stakes, there was the potential for bonuses to be refused this year.
Whether this is actually the first step in a U-turn by the UK government, after a number of prominent financial companies suggested they may move away from the UK, remains to be seen but the warning signs have been there for some time. The ongoing parliamentary enquiry into the banking sector and bonuses paid to Northern, Lloyds bank and Royal Bank of Scotland employees is proving to be very interesting and very informative.
Even though the enquiry still has some way to go we are seeing prominent figures from the financial community effectively backing the payment of bonuses as a means of attracting the top talent in the worldwide financial markets. It seems as though the story the government was portraying only a few weeks ago may well have changed again!
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