Former financial regulator to lead City bonus inquiry

Sir David Walker, a former financial services regulator, is to head a
inquiry into the corporate governance of the banking industry.

The inquiry comes amid growing anger over proposed bonuses for executives at
banks were saved with taxpayers’ money.

Sir David, a senior adviser at Morgan Stanley, is the former executive
of the Bank of England and former chairman of the Securities and Investments

Board. Last year he chaired an independent working group which drew up a
voluntary code to improve levels of disclosure in the private equity industry.

The Treasury announcement came as Prime Minister Gordon Brown said there must

be ‘no rewards for failure’ and Tory leader David Cameron urged bankers to ‘wake
up and smell the coffee’ and recognise that without the state bail-out they
would not have jobs, let alone bonuses.

He announced that he is setting up an “Economic Recovery Team” made up of
senior Tories”, including Baroness Sheila Noakes — a former partner at KPMG and
a former member of the Inland Revenue Management Board.

Other members include former Tory chancellor Ken Clarke, now shadow
enterprise and business secretary, and shadow chancellor George Osborne, to work
up policies to secure economic revival.

Cameron brushed aside arguments that bankers’ contracts may mean that banks
have to honour bonuses if targets have been met. He said many people were
furious at the bankers’ behaviour and urged the government to operate on a ‘he
who does the paying does the saying’ basis.

Brown promised an audience of economists in London that he would ‘sweep
aside’ the short term bonus culture among bankers.

Related reading

tax dictionary