UK business secretary pushing for disgraced bankers to be disqualified

15 July 2013

UK business secretary Vince Cable is pushing for the Financial Conduct Authority to take action on disgraced bankers should any financial crises occur in the future.

He has raised the prospect of other regulators being able to ban directors of companies that fail to stick to their remit, the Telegraph reports.

Mr Cable wants the measure to be brought in to restore faith in firms and their directors.

Regulators in the UK have been criticised in the past for not providing sufficient punishment to bankers who have acted recklessly. For example, after the 2008 financial crisis, no action was taken against Fred Goodwin of the Royal Bank of Scotland for his part in the collapse.

The government recently backed plans to jail disgraced bankers - a recommendation put forwards by the Parliamentary Commission for Banking Standards.

As part of the changes, bonuses will now be deferred by up to ten years and may be repayable if a bank needs to be bailed out.

By Asim Shah

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