Rise in bank bonuses due to anti-competitive practices
October 21, 2009 12:01 AM
Commenting on today's Centre for Economics and Business Research (CEBR) report which shows that City bonuses are to rise by 50% in January, Liberal Democrat Shadow Chancellor, Vince Cable said:
"This big increase in bonuses does not in any way reflect the particular contribution made by bankers to the economy.
"These bonuses are coming from the fact that banks are earning money from substantial Government borrowing and are able to earn bigger profits because there is less competition. What is particularly galling is that all their activities are in turn underwritten by the taxpayer.
"Ministers must stem public outrage by ending anti-competitive practices and ensuring that those getting big bonuses pay their fair share of tax rather than escape via the many loopholes which the Government has left."
