INDUSTRY NEWS

Bankers accept pay cuts in govt deal

Bankers have agreed to curb executive pay levels as part of an agreement with the UK government.

Gordon Brown, senior ministers and representatives of the leading lenders worked through the night to agree a refinancing deal, which released additional cash into the sector.

“We are in discussion on a case-by-case basis with the banks who want to take up this scheme, about what will be the level of executive remuneration but particularly the bonus system, which has caused so much difficulty,” he said.

The deal provides reassurance that £250 billion debt issued by the banks will be guaranteed, released £50 billion to buy banking shares and extended the Bank of England’s special liquidity scheme.

Banking offices in London welcomed the announcement but now have to demonstrate tighter controls on the wages of their best-paid staff.

Mr Brown told MPs the government’s intention was to support and reward responsible risk-taking, “but not to reward irresponsibility in risk-taking and excessive risk-taking, that has caused so much damage”.ADNFCR-1329-ID-18818446-ADNFCR

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