Top banker admits mistakes
(15 December 2009 – UK) A top British Banker has admitted ‘mistakes were made’ in the industry by paying out large bonuses.
Bob Diamond, the president of the British banking group Barclays, told the UK’s Sunday Telegraph that banks had done a ‘pretty poor job’ of handling the bonus process.
Mr Diamond also added that the bank would be deferring up to 60 percent of payouts, more than double the normal level.
The banker’s admission comes after Britain announced new ‘super tax’ on bankers’ bonuses.
Mr Diamond said that the whole banking sector has done a pretty poor job of managing how the bonus process works and agreed that many functions should have a higher portion of fixed and a lower portion of variable.
The top banker also suggested that in future, the government should not have to step in to prop up banks that have got themselves into trouble.
In principle there should not be institutions that are too big too fail or too complex to fail, Mr Diamond highlighted.
Mr Diamond also said that a regulatory framework is needed that allows the ability to address failing institutions. Big and systemic are not synonymous and big and failure should not be in the same sentence.
A YouGov poll of 2,044 adults on Thursday and Friday last week for The Sunday Times newspaper found that 79 percent supported the windfall tax on bankers' bonuses, with 11 percent against.
About 24 percent felt finance minister Alistair Darling was telling the truth about the economy.
Mr Diamond also added that the bank would be deferring up to 60 percent of payouts, more than double the normal level.
The banker’s admission comes after Britain announced new ‘super tax’ on bankers’ bonuses.
Mr Diamond said that the whole banking sector has done a pretty poor job of managing how the bonus process works and agreed that many functions should have a higher portion of fixed and a lower portion of variable.
The top banker also suggested that in future, the government should not have to step in to prop up banks that have got themselves into trouble.
In principle there should not be institutions that are too big too fail or too complex to fail, Mr Diamond highlighted.
Mr Diamond also said that a regulatory framework is needed that allows the ability to address failing institutions. Big and systemic are not synonymous and big and failure should not be in the same sentence.
A YouGov poll of 2,044 adults on Thursday and Friday last week for The Sunday Times newspaper found that 79 percent supported the windfall tax on bankers' bonuses, with 11 percent against.
About 24 percent felt finance minister Alistair Darling was telling the truth about the economy.
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