‘Irresponsibility’ fuelled meltdown: Brown

Gordon Brown has expressed concern over the size of bonuses paid to City
Brown blamed ‘irresponsibility’ in addition to the City’s culture of bonuses as
having sparked the crisis in financial markets, the FT reported.

Planned measures are being discussed within the Financial Services Authority
(FSA), including the possibility of banks being obliged to retain capital if
excessive risks were carried out in securing bonuses.

‘There’s an element of the bonus system that is unacceptable… everyone knows
there is going to have to be changes in that,’ Brown said.

Along with Treasurer Alistair Darling, Brown has been under increasing
pressure to restrict executive bonuses.

A new middle-class tax cut funded by a 45% rate of tax on those earning more
than £175, 000 per year has also been proposed by MP’s and trade unions.

Further reading:

FDs hedge bets with 2007’s biggest pay rises

Treasury chief calls for board members to show pay

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