Goldman Sachs, JP Morgan and others agree to UK bonus reforms

15 October 2009

Goldman Sachs, JP Morgan and other major investment banks have agreed to curb their bonus payments to staff in the UK.

Nine organisations, including Credit Suisse, Bank of America and Morgan Stanley, signed up to the tough new regulations after a meeting with UK financial services minister Lord Myners.

The new rules on bonuses were drawn up at last month's G20 summit in Pittsburgh and the major banks in the UK had already agreed to sign up to the legislation.

A joint statement was released by the banks following the deal and said: "We welcome the global nature of the G20 remuneration reforms and will work with the FSA [the UK's Financial Services Authority] and regulators in our home countries in adopting the reforms."

Last month, in an interview with the Daily Telegraph, he stated he thought bankers were still being paid far too much money.

After this week's deal with the global financial institutions operating in the UK, Lord Myners stated that banks needed a responsible approach to bonus payments if they were to regain public trust.

By Tony Aynsley

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