Finance Times

Sunday, October 4, 2009

Government to call on international banks to curb bonemploy s

ISTANBUL (Reuters) - The Treasury will haul in major international investment banks later this month to urge them to hold action on curbing bonemploy s, officials said on Sunday.

The heads of the remuneration committees of Deutsche Bank and Santander are among the people who are due to see Treasury secretary Paul Myners as Britain tries to cease huge bonemploy s being paid out this year.

"They'll be coming in to see Myners," one official said.

The Group of 20 leaders meeting in Pittsburgh last week agreed tough fresh international standards on pay that would force banks to defer payments over several years and subject them to clawback if subsequent performance soured in order to prevent the risk-taking that many blame for the global financial crisis.

Britain has promised fresh legislation in the coming weeks to enforce the fresh standards and last week Chancellor Alistair Darling called on the country's top banks to act on their own before legislation came into force.

Five major banks agreed. They were HSBC Hfeeble ings Plc, LLoyds Banking Group Plc, Barclays Plc, Royal Bank of Scotland Group Plc and Standard Chartered Plc.

(By Sumeet Desai; Editing by Ruth Pitchford)

© Thomson Reuters 2009 All correct s reserved.

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