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| Version 0 | Version 1 |
|---|---|
| Darling issues warning to bankers | Darling issues warning to bankers |
| (about 4 hours later) | |
| It would be "disastrous" for bankers if they returned to their old ways and repeated past mistakes, Chancellor Alistair Darling has warned. | It would be "disastrous" for bankers if they returned to their old ways and repeated past mistakes, Chancellor Alistair Darling has warned. |
| As reports suggest a return of the City bonus culture, Mr Darling said some people there were too complacent and needed "to be brought back to Earth". | |
| He told the Independent that ministers would not legislate to cap bonuses. | He told the Independent that ministers would not legislate to cap bonuses. |
| But he said it would give regulators more power to intervene if firms offer rewards that encourage risky behaviour. | But he said it would give regulators more power to intervene if firms offer rewards that encourage risky behaviour. |
| Taxpayer support | Taxpayer support |
| "There are people who are too complacent in my view," Mr Darling said. | |
| "Some (banks) are only operating at all because of very substantial support from taxpayers, who are entitled to tell the government we must not repeat the mistakes. | "Some (banks) are only operating at all because of very substantial support from taxpayers, who are entitled to tell the government we must not repeat the mistakes. |
| "If they go back to the way they were - to business as usual - without asking themselves over and over again whether they understand what they are doing, that would be disastrous for them and the rest of the world." | "If they go back to the way they were - to business as usual - without asking themselves over and over again whether they understand what they are doing, that would be disastrous for them and the rest of the world." |
| There are reports that "bonuses are back" is a catchphrase emerging in the City. | There are reports that "bonuses are back" is a catchphrase emerging in the City. |
| Mr Darling said the city watchdog, the Financial Services Authority (FSA) would get greater powers to intervene if companies offered rewards which encouraged risky behaviour. | |
| Banks could be forced to hold more capital to provide a safety net, he added. | |
| Meanwhile, the Bank of England is expected to be given a key role in assessing risk to the system as well as individual banks. Furthermore, it will be handed the task of preventing future booms from turning into bubbles. | Meanwhile, the Bank of England is expected to be given a key role in assessing risk to the system as well as individual banks. Furthermore, it will be handed the task of preventing future booms from turning into bubbles. |
| The chancellor played down suggestions of a power struggle between the FSA and the Bank of England, saying "it's not a turf war". | The chancellor played down suggestions of a power struggle between the FSA and the Bank of England, saying "it's not a turf war". |
| But he called on regulators to "put people on the rack and ask some pretty tough questions". | But he called on regulators to "put people on the rack and ask some pretty tough questions". |
| Mr Darling said regulators needed to be "vigilant about the risks" and called on bankers to thoroughly question the decisions they were taking. | Mr Darling said regulators needed to be "vigilant about the risks" and called on bankers to thoroughly question the decisions they were taking. |