Banking Bill

That is absolutely right. I agree that the bonus culture must be tackled effectively now. There is even a case for back-dating that approach in relation to directors who got us into this mess and made those worthless ““investments””. An article entitled, ““Finance directors on over £1 million a year””, in the 10 October issue of Fact Service, reports:"““Some 49 out of the 92 finance directors of the FTSE 100 companies have now joined the millionaires' club, up from 41 out of 96 last year…Some of the largest bonuses this year have been paid to financial directors in the banking and financial services sector.””" It adds that"““there has of course been a meltdown with the government coming to the rescue of the finance sector. The rescue plan means an end to big bonuses based on easily met performance targets””." But does it mean an end? That is the point of my amendment; I am saying that it should. The article goes on to say that"““to take part in the rescue plan, banks will have to sign an agreement on executive pay.””" Are we going to see those agreements? That is another question that needs to be asked. On 6 November, the Fact Service reported, under the heading ““City fat cats””:"““Some people in the City don't have to worry about the London Living wage. The unnamed highest paid director at finance group Jupiter Asset Management had a good 2007 picking up £13.56 million in pay and bonuses, according to accounts filed at the company watchdog Companies House.””" That is wrong. Such payments are certainly wrong in this climate, and they must be brought to a halt. That is Congress's view, and it is my view. If the Minister does not want this provision, because he rejects the wording or wants some other formula involving the FSA or the need for agreements on executive pay and dividends, that will leave questions unanswered. How would such a scheme be implemented by the FSA? Would there be a policy of no bonuses? If bonuses are to be paid, on what basis would they be paid? Will there be any limits placed on them? What controls will be placed on them? What about those people who have already been paid on a false prospectus? Will there be any claw-back by the FSA in regard to the failed company directors who have got us into this mess? Will the provision apply to all banks, or just to those that have been rescued? Will it apply to speculative financial vehicles such as hedge funds? How will the FSA report? Will the agreements be published and placed in the public domain? I think that they should be. Our constituents demand an absolute end to the bonus culture in the City. It has served this country badly and got us into a mess. It has put our people's livelihoods and our country's economy at great risk. The people who have taken their rewards should now pay the price.