Financial Services Regulation

Lord Brooke of Alverthorpe Excerpts

Wednesday 16th June 2010 Lords Chamber

[Lord Sassoon]

My Lords, I thank my noble friend Lord Newby for drawing further attention to the fact that we need to deal in an appropriate way with all the personnel issues. The system has failed but there are extremely good officials in the Bank of England, the FSA and elsewhere working on these matters. It is imperative that we act as sensitively as we can to enable them to carry on with their important work, particularly at a time of continuing financial fragility. While there will be a tension with the desire for speed, the need for legislation and so on, we are discussing these points with both the Governor and the chairman and chief executive of the FSA.

[Lord Brooke of Alverthorpe]

My Lords, as many people next week will face a substantial cut in their standard of living, will the commission deal with the issue of pay and bonuses within the banking industry? If not, who will and when?

[Lord Sassoon]

The remit of the banking commission has been placed in the Library of the House. Fundamentally, it refers to reducing systemic risk, moral hazard, firm failure and promoting competition. It will be up to the commission, but I am sure it would value any input from the noble Lord, Lord Brooke, or anyone else from this House who wishes to remind it of the linkage between pay and bonuses, or anything else, and the commission’s remit.