Investment banks set for bonus curb talks

Lord Myners to call in global groups to follow UK banks' lead over pay

International investment banks are preparing for a call from the Treasury in the coming days, hauling them in for meetings to sign up to proposals curbing excessive bonuses for their top staff.

Some of the world's largest investment banking groups, including JP Morgan, Goldman Sachs and Deutsche Bank, are expected to meet Treasury Secretary Lord Myners "within a week or two," insiders said.

A spokesman for the Treasury also confirmed: "Lord Myners will be meeting with the international investment banks over the issue of bonuses." Sources at several of the investment banks said they were yet to hear from the Treasury.

This follows last month's move by the UK Government to impose strict bonus limits on domestic banks following last month's meeting of the Group of 20 leaders in Pittsburgh.

The Prime Minister, Gordon Brown, and the Chancellor, Alistair Darling, pledged to tackle the "bonus culture" during the Labour Party conference in Brighton, especially in the run-up to bonus season, which starts in earnest this quarter. Bonuses are considered to have encouraged excess risk-taking before the credit crunch.

HSBC, Lloyds Banking Group, Barclays, Royal Bank of Scotland and Standard Chartered all agreed last week to sign up to the proposals as Britain became the first G20 nation to implement the global reforms.

Mr Darling met the banks' chairs of remuneration committees on Wednesday, who said they would reform their structures by the end of the year. The measures cover all senior executives and employees that work in divisions that affect the banks' risk exposures.

The banks said they would work with the Financial Services Authority (FSA), the City watchdog, to adopt the reforms adding they recognised that "all G20 nations have also committed to their implementation to ensure a level playing field".

The next set of meetings with international groups are introductory. They will outline the Treasury's UK agreement and how to go press ahead with global banks . "It will obviously be more complicated because of cross-border regulations," one insider said.

However, Lloyds Banking Group, the part-nationalised bank, yesterday hit back at reports it had agreed the next round of bonuses to its senior management to be unveiled in the new year. Mindful of the outrage over the pay package awarded to Stephen Hester, the chief executive of Royal Bank of Scotland earlier this year, sources close to the group said that it had "other priorities at the moment".

Lloyds said in a statement it had previously announced an intention to undertake a review of the company's remuneration policies including those for executives. "We are currently in the very early stages of this review and no decisions have been taken," it said.

The issue of bonuses will be among Mr Darling's priorities as he returns from Istanbul, where the annual meeting of the the International Monetary Fund (IMF) has been taking place.

It emerged this weekend that the UK and France have pledged to hand the IMF $4bn (£2.5bn) to provide support for poorer countries in crisis in the wake of the downturn. Dominique Strauss-Kahn, the IMF's managing director, called the decision "historic," adding that the loan facility for low-income countries would have collapsed in weeks without the injection. The British taxpayers will not fund the facility, which supports countries that cannot pay for imports following the global financial downturn, and has an interest rate of zero, as it is drawing on currency reserves given to them by the IMF.

Christine Lagarde, the French minister of economic affairs, said: "Our respective $2bn are not a huge amount relative to the magnitude of financing that is needed, but this is indicative of what we can do and others can eventually follow." This follows Mr Strauss-Kahn's call last Friday for a tax on financial services firms to help fund poorer nations. He said: "Considering the financial sector is creating a lot of systemic risks for the global economy, it is fair that such a sector pay some part of its resources to help in mitigating the risks they are creating." Mr Darling is currently studying these proposals.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Joe Cocker performing on the Stravinski hall stage during the Montreux Jazz Festival, in Montreux, Switzerland in 2002
musicHe 'turned my song into an anthem', says former Beatle
News
Clarke Carlisle
sport
Sport
footballStoke City vs Chelsea match report
Arts and Entertainment
David Hasselhof in Peter Pan
theatreThe US stars who've taken to UK panto, from Hasselhoff to Hall
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Life and Style
Approaching sale shopping in a smart way means that you’ll get the most out of your money
life + styleSales shopping tips and tricks from the experts
News
newsIt was due to be auctioned off for charity
News
Coca-Cola has become one of the largest companies in the world to push staff towards switching off their voicemails, in a move intended to streamline operations and boost productivity
peopleCoca-Cola staff urged to switch it off to boost productivity
Environment
Sir David Attenborough
environment... as well as a plant and a spider
Voices
'That's the legal bit done. Now on to the ceremony!'
voicesThe fight for marriage equality isn't over yet, says Siobhan Fenton
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

The Jenrick Group: Night Shift Operations Manager

£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...

SThree: Trainee Recruitment Consultant - LONDON

£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...

SThree: Graduate Recruitment Consultant

£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...

Day In a Page

Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

Clocks, rifles, swords, frogmen’s uniforms

Surrounded by high-rise flats is a little house filled with Lebanon’s history
Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

Four months after the bombardment, Gaza’s wounds are yet to heal

Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
Gastric surgery: Is it really the answer to the UK's obesity epidemic?

Is gastric surgery really the answer to the UK's obesity epidemic?

Critics argue that it’s crazy to operate on healthy people just to stop them eating
Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

Homeless Veterans appeal: Christmas charity auction

Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
Pantomime rings the changes to welcome autistic theatre-goers

Autism-friendly theatre

Pantomime leads the pack in quest to welcome all
The week Hollywood got scared and had to grow up a bit

The week Hollywood got scared and had to grow up a bit

Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

Panto dames: before and after

From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
Thirties murder mystery novel is surprise runaway Christmas hit

Thirties murder mystery novel is surprise runaway Christmas hit

Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

Anne-Marie Huby: 'Charities deserve the best'

Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
The botanist who hunts for giant trees at Kew Gardens

The man who hunts giants

A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there
The 12 ways of Christmas: Spare a thought for those who will be working to keep others safe during the festive season

The 12 ways of Christmas

We speak to a dozen people who will be working to keep others safe, happy and healthy over the holidays
Birdwatching men have a lot in common with their feathered friends, new study shows

The male exhibits strange behaviour

A new study shows that birdwatching men have a lot in common with their feathered friends...
Diaries of Evelyn Waugh, Virginia Woolf and Noël Coward reveal how they coped with the December blues

Famous diaries: Christmas week in history

Noël Coward parties into the night, Alan Clark bemoans the cost of servants, Evelyn Waugh ponders his drinking…
From noble to narky, the fall of the open letter

From noble to narky, the fall of the open letter

The great tradition of St Paul and Zola reached its nadir with a hungry worker's rant to Russell Brand, says DJ Taylor
A Christmas ghost story by Alison Moore: A prodigal daughter has a breakthrough

A Christmas ghost story by Alison Moore

The story was published earlier this month in 'Poor Souls' Light: Seven Curious Tales'