Banking

Russell Brown Excerpts

Wednesday 15th January 2014 Commons Chamber

[Chris Leslie]

I do not think they have, although I think before the general election the Prime Minister indicated that he did not want any taxpayer-owned banks to pay out bonuses of more than £2,000. We know what happened to that proposal.

The issue goes beyond anger about bank bonus season. Serious reforms to the banking culture and the role of banking in the economy are still required. Ministers still have not grasped the role that banks ought to be playing to repair our economy. They are still out of touch on the causes of three years of economic stagnation and the reforms to the banking sector that are still needed. How much more evidence do they need? Despite the billions of pounds needed to ensure that the cash machines kept working; despite the mis-selling and ripping off consumers; despite the money laundering and sanctions busting; despite banks peddling interest rate swaps to struggling small firms; despite multi-billion losses in the disastrous London Whale scandal—London Whale was the name given to a trader—and fines of more than £1 billion for Deutsche bank in the United States for mis-selling mortgage-backed securities; and despite the rigging of LIBOR and other benchmark indices, including investigations into attempts by up to 15 banks to manipulate a £5 trillion dollar a day foreign exchange market; despite all that the Government still do not have the stomach to do what it takes to clamp down on misconduct and to finish the job.

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

My hon. Friend mentions the LIBOR scandal and the mis-selling of products. May I put on record my thanks to the hon. Member for Aberconwy (Guto Bebb) for his work as chair of the all-party group on interest rate swap mis-selling?

On bonuses and reward, does my hon. Friend believe that perhaps what we should say to high earners is that there will be no more bonuses until they have sorted out the mess the Financial Conduct Authority is currently investigating, and until all the individuals and companies have had their cases considered fully and have been compensated for the mess the bankers made?