Bankers targeted in UK government bill

19 November 2009

The British government has announced tough new regulations for the banking industry that include the power to void employment contracts and an end to guaranteed bonuses.

Chancellor Alistair Darling introduced the Financial Service Bill to parliament this morning and said the proposals aimed to make banks more robust, while affording greater protection for the consumer.

"In the future, taxpayers will not be called on to protect banks from the consequences of their actions," he stated.

As well as the new rules on pay, the government hopes to set up a Council for Financial Stability.

It will focus on the promotion of greater transparency within the financial services industry and the management of systemic risk on a national and international scale.

But it is not clear if the measures will actually take effect.

A general election will be held in the UK next year and Conservative party leader David Cameron, who is favorite to be voted into power, has opposed the legislation.

He said the regulatory structure of the UK is flawed and will be scrapped if the Conservatives take power.

By Asim Shah

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