Osborne downplays tough image on banker’s bonuses

CHANCELLOR GEORGE OSBORNE wants backing from EU finance ministers before imposing new bank bonus rules, in what is being seen as a further attempt to downplay the Government’s “tough on banks” stance in response to City pressure.

The move comes as it has emerged that officials are in talks with the banks over a contribution of around £1bn to a “Big Society bank”, that would go towards community projects in exchange for the government quietly agreeing not to impose new rules without international agreement, reported The Independent.

Critics have reacted furiously, accusing the government of “going soft”, despite pledging a “get tough” stance on banks in the run-up to the General Election, the newspaper also said.

Osborne is writing to the EU’s financial services chief Michel Barnier and his fellow finance ministers to seek support to force banks to disclose in progressive “pay bands” how many people they pay more than £1m.

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