Lib Dems call for cap on bankers’ bonuses

Bankers’ bonuses should be capped at £2,500 a year, say the Liberal Democrats, while board directors in financial institutions should not receive extra payouts.

Lib Dem leader Nick Clegg has called for a ‘top-to-toe’ overhaul of the British banking system, bringing an end to “morally obscene” salaries and bonuses, reports the BBC.

The Lib Dems’ planned reforms include extending the Financial Services Act so that loss-making banks cannot pay bonuses, publishing the names of all bankers who earn more than the prime minister (£197,689), and fining directors of banks which break the industry’s code of practice.

Clegg said he hoped his party’s plans “will transform the culture of greed which continues to disfigure the banking industry in this country”.

The Liberal Democrats will publish their manifesto tomorrow.

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