The Financial Services Authority (FSA) is urging banks to curb bonuses following the multi-billion pound payment protection insurance bill, according to the Financial Times.
It is estimated that the total cost of PPI claims will be in excess of £7bn.
The subject of bankers’ bonuses tends to get even the most passive of person’s blood boiling. Bankers and their bonuses have received a lot of negative attention over the past few years in particular; not only because of their PPI mis selling antics but over their part in the current dire financial climate and so it is safe to presume many will support the FSA’s demands.
While the FSA does not have any power to get involved with bonuses, the Financial Times has reported it [the FSA] has been having “robust conversations” with the banks over the matter and is firmly encouraging them to consider the cost of the PPI mis selling scandal when dishing out sizeable bonuses.
Back in December it was confirmed Lloyds Banking Group were looking into Senior Executives’ bonuses including its former Chief Executive, Eric Daniels.
Daniels left the part-nationalised bank at the end of February 2011, £1.45m end-of-year in hand, just a few weeks before the PPI scandal hit and the bank landed a £3.2bn bill.
