Bankers could face further Labour bonus clawbacks

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The current 'clawback' period for bankers' bonuses is currently seven years, but shadow chancellor Ed Balls said that was 'too weak'.

BBC News reports that extending the period would ensure bankers who were guilty of misconduct would 'pay a price', he added.

The Tories dismissed the plans, saying nobody will trust a word Mr Balls says.

The proposal was outlined ahead of the publication of Labour's banking reform paper, which will set out its economic plan and the measures a future Labour government would take.

Under previous rules, bankers' bonuses were often deferred for a period of three to five years, during which time the bonus could be clawed back if necessary.

However, the Bank of England extended the period to seven years at the beginning of the year, saying misconduct such as the rigging interest rates or reckless risk-taking can take longer to emerge.

But Balls said Labour wanted to extend the clawback period further.

Hit the link below to access the complete BBC News article:

Labour plans to extend bankers' bonus clawback to 10 years

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