After the huge arguments between London and Brussels over bankers’ bonus levels, where the UK has argued Europe is encouraging our bankers to leave and go to Geneva, New York and Hong Kong, we have now responded by introducing levels of punishment for financial wrongdoing that far outstrips those in Geneva, New York and Hong Kong.
The measures from the Bank of England announced today say that bankers found to be taking unacceptable risks in the future, will have up to seven years exposure to clawbacks.
Those unacceptable risks and behaviours would include actions such as the LIBOR and FX market fixing, the challenges of Gold and Silver market rigging, SWAPS mis-selling and more.
Equally, it would include the issue that I think is at the heart of all of this: casino capitalism.
Cartoon by David Horsey at the Los Angeles Times