March 14, 2014
Bankers may have to return their bonuses up to six years after receiving them, the Bank of England has said.
Repayment could be ordered in the event of bankers’ “misbehaviour”, big losses at their bank or bad risk management, said the Bank.
The banking system came under scrutiny after many banks were bailed out by billions of pounds of taxpayers’ money following the credit crunch.
Previously, the Bank had suggested repayments of promised bonuses.
‘No longer safe’
The bonuses would have been effectively cancelled, rather than clawed back from the bankers, who may have already spent the money.