Union calls on chancellor to investigate City bonus bonanza

The GMB union has called on chancellor Gordon Brown to investigate the massive bonuses paid to financial services staff in the City.

Last week the Centre for Economic and Business Research reported that City traders were set for a bonus bonanza as £7.5bn will be paid out in bonuses for their performance in 2005.

This figure is up by 16% on 2004’s £6.4bn. The GMB said that most of this money will be paid to just over 3,000 bankers, traders and investment ‘experts’ who will each get more than £1m.

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Paul Kenny, acting general secretary of GMB, said that “financial engineers” in the City were systematically and legally “looting the nations savings to feather their own nests”.

“GMB is calling on the chancellor to set up a Royal Commission to examine the role of the City in the UK and international economy and in managing the savings of the nation and to come forward with a new rule book to regulate financial markets,” he said.