George Osborne is expected to respond to the Parliamentary Commission on Banking Standards’s final report in his Mansion House speech this evening. The report is hefty and packed with recommendations, but there are two areas where the Chancellor will find himself treading a particularly tricky path. Both the proposal to defer bonuses and introduce a criminal offence of reckless misconduct in the management of a bank are designed to encourage responsibility and a greater regard of the consequences of bad behaviour. But Osborne will know that they also pose a threat to the success of the city.
He will need to consider what effect deferring some remuneration for up to 10 years will have on London’s competitiveness as a financial centre. Such a long period of time could arguably lead to talent moving to other cities where the rules mean they get their money earlier.
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in