Alistair Darling, the Chancellor, has called for a change in the banking culture to stop executives being paid massive bonuses while presiding over failure.
Speaking as he announced an inquiry into banking bonuses, Mr Darling revealed that he had held talks with the Royal Bank of Scotland, which has received a £20 billion taxpayer bailout, to urge chiefs there to reconsider plans to pay out £1 billion to staff.
Meanwhile, George Osborne, the shadow chancellor, said that the banking industry should be told that "the party is over".
The Chancellor stressed that while incentive schemes may be appropriate in some circumstances, bonuses should only be paid in exceptional circumstances, to reward success rather than failure.
And he insisted that bankers responsible for the near-collapse of the financial system last autumn should not receive a bonus. Alistair Darling Urges Banks to Withhold Bonuses Amid Consumer Fury >>> By Rosa Prince, Political Correspondent | Sunday, February 8, 2009
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