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THE Bank of England laid out plans yesterday for reckless bankers to be stripped of bonuses for up to 10 years after they are awarded.
Newly confirmed rules — which will come into force in January in time for the next round of City bonuses — will mean pay-outs can be clawed back up to seven years after they are handed out.
The rules will not apply retrospectively, partly for fear this could result in legal action.
In addition, regulators will be able to start criminal prosecutions, under existing legislation, against senior managers “where they take a decision that causes an institution to fail.”
Shadow chancellor Ed Balls and Business Secretary Vince Cable said the bank was doing the right thing.
But free-market fanatic Mark Littlewood of the Institute of Economic Affairs said it risked undermining the City by pushing talent and investment overseas.
