Bonuses for UK bankers 'set for 50% increase'

22 October 2009

Bankers working in the UK will receive 50 per cent larger bonuses in 2009 than last year, according to an economic thinktank.

Earlier this month, nine global banking institutions operating in the UK, including Goldman Sachs and Credit Suisse, agreed a deal with the British government, based on G20 proposals, to curb bonus payments to their top executives.

Following the agreement financial services secretary Lord Myners said the financial sector needed to regain the trust of the public through sensible remuneration policies.

But the report from the Centre for Economics and Business Research suggested that bonus payouts will continue to rise in the UK until 2012.

This year, UK bankers are on course to receive bonuses totalling almost $10 billion despite the fact that almost 50,000 banking jobs have been lost in Britain since the start of the financial crisis two years ago.

The 2009 bonus levels remain 40 per cent under the record bonus levels that were recorded in 2007.

By Tony Aynsley

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