Bankers' bonuses risk 'political storm'

12 October 2010

The financial sector has been warned that handing hefty bonus payouts to bankers could generate renewed controversy, after a new poll revealed many workers in the sector are expecting increased payouts this year.

According to research carried out by recruitment website, seven out of ten professionals at British financial institutions think they are in line for a bigger bonus than they received in 2009.

"Expectation levels in the City are running high this year which, if realised, will place bankers in the eye of a political storm once more," said eFinancialCareers' James Bennett.

He added that the coalition government could take action after repeatedly warning banks about bonus payments, but suggested the performance of individual financial firms may also prove crucial to the political and public response.

The news came after Confederation of British Industry director general Richard Lambert called on bankers and government ministers to end their war of words over financial sector salaries.

By Gary Cooper

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