Cameron backs prison for reckless bank bosses

A NEW law is to be introduced which will allow reckless bank bosses to be jailed and bonuses clawed back, Prime Minister David Cameron has confirmed.

Prime Minister David Cameron. Picture: Neil Hanna

The government will use the banking bill, which is currently going through parliament, to bring in the measures which were recommended in the Commission on Banking Standards’s report.

The announcement came during Prime Minister’s questions where Mr Cameron also announced a new trade minister, Ian Livingston, the chief executive of British Telecom. The commission called on the government to hold senior bankers personally responsible for malpractice and introduce a new criminal offence for reckless management that carries a custodial sentence.

Mr Cameron was pressed on whether he supported the recommendations on bonuses and criminal penalties.

“Yes, I do support both of those measures,” he said.

“Obviously, we need to take time to read this excellent report.

“But penalising, including criminal penalties against bankers who behave irresponsibly, I say yes.

“Also, making sure that banks who are in receipt of taxpayers’ money that you can claw back bonuses, I say yes.”