Opposition Day — Clawback of Bankers' Bonuses and Reform of the Banking Industry — 25 Feb 2015 at 15:50

The majority of MPs voted against extending the clawback of bank bonuses in cases of inappropriate behaviour and against banking reform to increase competition and boost lending to smaller businesses.

The motion rejected by the majority of MPs was:

• That this House
• believes bonuses should be rewards for exceptional performance and that, following the banking scandals that have emerged in the last few months, this year’s bank bonus round should reflect this principle;
• further believes that a tax on bank bonuses should be levied in order to fund a guaranteed paid starter job for young people who have been out of work for over a year, and that this tax should cover allowances paid by banks which attempt to get round the EU bonus cap;
• calls on the Government to reform the rules on bankers’ bonuses by extending clawback of bank bonuses that have already been paid in cases of inappropriate behaviour to at least 10 years and by also extending the deferral period for senior managers to 10 years, in line with the recommendations of the Parliamentary Commission on Banking Standards; and
• further calls on the Government to implement wider reform of the banking industry to increase competition and boost net lending to small and medium-sized businesses.

Debate in Parliament | Source |