Brown seeks global action on bankers' bonuses

01 Sep 2009

1

British prime minister Gordon Brown said that Britain will push for tough global action to crack down on excessive bonuses for bankers.

In an interview with the Financial Times, the prime minister calls for a "clawback system" to confiscate bonuses based on failed speculative deals.

Excessive risk-taking, resulting in massive bonuses for bankers, has been blamed for helping spark the global financial crisis that led to multi-billion dollar government bailouts of world banks.

"Remuneration has got to be based on long-term success, not short-term speculative deals," Brown said, adding that, ''there's got to be a clawback system in remuneration itself…if things are not working in year two."

The prime minister warns that Britain can not introduce any changes unilaterally, and pledges to work with international partners at the G-20 summit in Pittsburgh, later in the month.

The G20 finance meeting, an informal gathering of 19 countries and EU that collectively represent about 85 per cent of the world's economy, will discuss the crucial issue of bankers' bonuses.

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