John Thurso urges bankers’ bonus crack down

John Thurso says the reforms should address the issue of bankers' pay.

THOSE in the banking industry are overpaid and reforms need to address that, according to local MP John Thurso.

The Lib Dem was speaking in his role as a member of the Treasury select committee when members had the chance to question Sir John Vickers, chairman of the Independent Commission on Banking, on his interim plans for change.

These propose ring-fencing UK retail banking from investment banking so the former is protected from risks run by the latter. This would also mean taxpayers would no longer be implicitly underwriting the parts of banks involved in international trading.

John Thurso argued plans should also address the issue of bankers’ pay which contributed significantly to their willingness to take risks. The ICB will publish its final consultation this autumn.

John Thurso said: “There is a real problem in remuneration... why on earth should bankers be paid that much at all? Look at FTSE 100 companies, in engineering and chemicals, and all sorts of other things, remuneration for CEOs and chief operating officers is markedly less and they create wealth. The perception now is that bankers destroy it.”