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UK May Shift Bonus Limit Push To Lending Focus

Government officials have said that U.K. Prime Minister David Cameron has started to shift its focus from limiting excessive bonus payouts and financial firms to boosting lending to businesses, according to Bloomberg.

Government officials have said that U.K. Prime Minister David Cameron has started to shift its focus from limiting excessive bonus payouts and financial firms to boosting lending to businesses, according to Bloomberg. On Monday, anonymous officials offered insight into private talks that suggest that government leaders feel an increase in lending would do more to stimulate the economy than a crackdown on bonus practices. While the government may be ready to accept salaries above what the public deems acceptable, there is a hope that simply increasing disclosure could help curtail the most excessive practices.

Meanwhile, Chancellor George Osborne reaffirmed his commitment to curtailing bonuses, insisting, “Nothing is off the table.” The Chancellor said, “We are now in discussions to see if we can reach a settlement where the banks pay smaller bonuses than they otherwise would have done.” However, some analysts are questioning whether the government should pursue bonus limits, with Jason Kennedy of Kennedy Group summarizing, “In order for the taxpayer to recoup its investment you cant choke the banks.”

Click here to read the story on the shift in focus from Bloomberg News.

Click here for coverage of bonus regulation, also from Bloomberg News.

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