BANKS BONUSES MUST BE FROZEN - STUNELL

12.45.00pm GMT Wed 11th Feb 2009

The Government should freeze all bank bonuses, according to Liberal Democrat MP Andrew Stunell.

Criticising Monday's announcement from Prime Minister Gordon Brown for bankers to forego bonuses as "limp", Mr Stunell called for a stronger approach that would see all bonuses frozen.

Commenting, Andrew said:

"This is a very limp and belated reaction to the scandal of banking bonuses compared with that of the Obama administration.

"The Government must freeze all bonus payments for employees of semi-nationalised banks and ensure that the pay details of those earning over £100,000 a year are published. They must also create a new bonus framework which ensures they are being linked to long-term performance, payable in shares that are not redeemable within five years.

"To protect taxpayers, ministers must plan to split retail banking on the high street from the very high risk investment banking operations which have accumulated so much toxic debt.

"With ordinary workers struggling to make ends meet during the recession, and some even losing their jobs, it is sickening to think that the very people who were most responsible for getting us into this mess will be rewarded."

ENDS