Banking Reform

Bob Blackman Excerpts

Thursday 17th June 2010 Commons Chamber

[Mr Hoban]

There is an issue about pay levels, which we will need to look at. I am intrigued by the hon. Gentleman’s suggestion that there should be a greater variable element in relation to performance, given that a critique of many is that an excessive bonus culture in the City contributed to the financial crisis.

[Bob Blackman (Harrow East) (Con)]

Will the Minister please explain how today’s announcements will end the confusion in the markets and make sure that there is proper focus on regulation to end that confusion?

[Mr Hoban]

The package that we have set out today, which was greeted with a great deal of support last night when the Chancellor outlined it to the City, ends any uncertainty. The transition process that we have outlined today in relation to legislation, and the team led by Hector Sants, the current chief executive officer of the FSA, will reassure the City about the direction of travel on regulatory reform. The new settlement, which takes into account macro-prudential supervision, micro-prudential supervision and effective consumer supervision, will ensure that we have the right package of regulatory structures in future to safeguard the economy and to give confidence to consumers and others in the markets.