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BANKERS WHO ENGAGE in reckless misconduct or who put taxpayers’ money at risk should, in the worst cases, go to jail, according to a report by a parliamentary commission in the UK.
A long-awaited report on the future of banking has recommended radical reforms and more stringent penalties for bankers in the wake of a number of scandals in the UK.
These include the rigging of the Libor inter-bank lending rate, and previously the mis-selling of payment protection insurance – scandals which have cost billions of pounds.
The cross-party Parliamentary Commission on Banking Standards has also recommended that Royal Bank of Scotland, Ulster Bank’s parent company, be split into a good and bad bank as the UK Exchequer attempts offload its majority stake in the rescued institution.
Recently it was suggested that the troubled Ulster Bank division could be sold to the Irish government.
“The loss of trust in banking has been enormously damaging; there is now a massive opportunity to reform banking standards to strengthen the value of banking in the future and to reinforce the UK’s dominant position within the global financial services industry,” the report says.
Chancellor George Osborne’s annual Mansion House speech to business leaders is expected to address the commission’s report and outline the government’s privatisation plans for RBS and another state-owned bank Lloyds – both rescued at the height of the financial crisis.
The commission has said that senior bankers must be made personally responsible for malpractice – with a new criminal offence of reckless misconduct carrying a prison sentence.
Committee chairman, the Conservative Andrew Tyrie said: “Under our recommendations, senior bankers who seriously damage their banks or put taxpayers’ money at risk can expect to be fined, banned from the industry, or, in the worst cases, go to jail.
“That has not been the case up to now.”
Also under the proposals, more remuneration would be deferred for longer periods of up to 10 years, in order to “reflect the longer run balance between business risks and rewards”.
Pay and pension rights could also be cancelled if a banker misbehaves or the bank has to be bailed out. Another recommendation is that banks should be legally required to put their financial safety ahead of the interests of shareholders.
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Thieves are supposed to be prosecuted!!!
But here’s the problem: they didn’t steal anything. They invested it badly.
Anglo didn’t go bust because of Seanie’s inflated salary, or even because of the bizarre Maple deal (for which some people are actually being prosecuted). It was because its business model was shite. Anglo would still have gone bust if its entire management team were paid the minimum wage and no expenses.
If doing your job badly becomes a criminal offence, we’d better get building some more prisons.
Do dick measuring exercises between Anglo and AIB/BOI also count as shite busisness practices?
Not to mind hazardous and reckless trading??As well as fraudulent book keeping?As well as obstructing investigations??
The Irish people still dont know how badly they have been reamed out without the benefit of a tube of KY gel.
Banks are not normal businesses. The liability is not limited to the banks’ shareholders in any practical sense. Governments choose to limit the liability to the public. The government give banks a special licence to devalue effort with the objective of creating more money flow into better businesses. The do this by making loans. Simple as.
The only control government had in the past was removing a bank’s licence. The all or nothing option. The system is trust based on CEO reputation and credibility based on performance & expertise that was the concept in retaining a licence.
That failed.
Strick control of retail banking limits (% of market, leverage levels, isolation from commerical banking…), instruments used and external independent evaluation of loans for public utility should have been in place.
Now that we don’t mind governments checking every email we can move to a state where government software goes on every bank computer. Every inter bank transaction is validated by the CB and every banker is individually licenced with an annual renewed test relative to his expertise and at test centres. If loans look suspicious or a banker does not know/follow the loan procedure then they are not given their licence renewal. State certification over professional exams is the only way forward.
Emily, completely agree. I’d want to add though that being reckless and being foolish aren’t the same and honestly, if you do your job so badly that it causes harm to others, in normal circumstances you’d receive a worse result than just being fired!
Well they have basically gotten away with ruining the Irish economy, with their greedy decisions, most likely knowing what the outcome of so called “investments” would lead to… The word “FRAUD” springs to mind, that is more than a bad day at the office!!!!
That is CRIMINAL!!!! And they should be penalised for it!! Simple as that!!!!
Will never happen!
Iceland did, they also prosecuted politicians and are now back on their feet…. Oh they also burned their unsecured bind holders and they didn’t sunk into the sea!
Our politicians are corrupt cowards. They will do nothing because they aren’t affected by their own decisions!
Yes they did, at a very heavy price. A price that i’d doubt the people in this country would be willing to pay.
Libor gets wildly reported and action gets taken. The Anglo bail-out fraud gets no mention over here and people go unpunished.
#jailthefuhkers
Should but Won’t
Yes bring it in Ireland too.
And back date it.
And include their political and regulatory chums.
Jail them all for a long time.
Murderers!!!!
The banks are very unfriendly now.When I go in all I see is machines if you ask for the manager you have no chance,
It’s called cutbacks and progress.
It’s because they are afraid to meet there customers now
“Senior bankers who put taxpayers’ money at risk should be jailed”
What about the ones that have already ruined the country along with the politicians?
Why wait for them to put taxpayers money at risk, lets just lock them all up now.
Over here we take them out for a round of golf .
Its in UK that they are talking about this, The politicians in Ireland are still taking off their bicycle clips on this one. Why not set up a committee to look into setting a group to look at the possibility of challenge in courts, that should waste twenty years or so anyway.
Here here.
The UK does try to hold these corrupt individuals to account be finance or penalty points fraud. Not perfect but at least justice is seen to be served. Ireland on the otherhand lacks the Political environment and media to do likewise
Reckless bankers don’t put taxpayers money at risk. Corrupt politicians who back reckless bankers with our money – the money we need to pay for education and healthcare, should be the first to be jailed. Its called treason.
they should be treated like terrorists – shot then jailed – or other way around — or maybe the IRA should deal with them just as they do with drug dealers – too radical? well its time they stop destroying lives then
I have no Objection and floor staff of banks getting bonuses I do object to managers higher than floor level where they are retiring with huge , millions of a payout and have not earned it they hide behind the floor staff who get the wrath of the general public and are the poorest paid .
Over here we take them out for a round of golf
The UK is different, pull a penalty point scam…go to jail
Over here…2,000.000. vat fraud..stay in the dail.
could our lot not learn something?
That picture is incredible lads. Great job!
No shit.
What a ludicrous headline.
When you put money in a bank you lend the bank your money as an unsecured creditor and agree that the bank may do with it as they see fit.
How can you then propose jailing them if they make stupid investments with the money, its their money!
You have to be winding people up..
Bankers that make investments that are proven to be fraudulent and cause a chain reaction that affects the stability of the business , economy and costs the taxpayer should be bloody well jailed.
Its our money. !
You’re wrong.
Once you deposit your money in a bank that money belongs wholey to the bank and they can do with it as they please.
Read your contract.
There is a serious misconception that you own the money in your bank account, you do not, its an unsecured loan from you to the bank for which they pay you interest.
They lock people up here for not paying fines so yeah jail them.
corrupt bankers get a big pension here same as goverment ministers(bertie comes to mind for one)
Criminalising reckless banking would be merely symbolic and could only be prospective. Proof beyond reasonable doubt would be practically impossible. A successful conviction would never, ever be secured.
In the real world in Ireland, politicians, bankers, regulators, the judiciary and lawyers sing the same tune. They do not go to jail.
It was the Central Bank of Ireland, through its IFSRA division, which failed to apply even minimal prudential supervision, which was the cause of this disaster. The watch dog was fed and expensively wined into complete submission.
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