Leading article: Called to account (at last)

Share
Related Topics

The Bank of England Governor, Sir Mervyn King, has not enjoyed many accolades recently, what with the Bank's uncertain handling of the Northern Rock crisis and its subsequent efforts to end paralysis in the mortgage market.

Yesterday, though, he was right on the money when he called for an end to what he called the "unattractive" City practice of offering huge bonuses to often inexperienced staff, so encouraging them to take huge risks.

His analysis was spot-on, too. Appearing before the Treasury Select Committee, he said the global credit crisis should make the banks understand they are "paying the price for having designed compensation packages which provide incentives that are not,in the long run in, the interest of the banks themselves". Indeed. He also drew a refreshing contrast between the big boys of the City, and their bonuses, and those who – far less conspicuously and far less well rewarded – run small businesses across the country. It was unfortunate, he reflected, that City money drained so much youthful talent. Right again, Sir Mervyn. The City may be the fount of London's prosperity but small firms make the rest of the economy go round. They succeed, not because of funny City money, but because they are soundly managed.

We do, though, have one quibble. It is not just the banks that are paying the price of the bonus culture. Even from his elevated perch, he should know that all the rest of us, including those small businesses, have no choice but to share the misery. If only he had made his point about bonuses rather louder and rather earlier, we might not be in quite the mess we are in.

React Now

Latest stories from i100
iJobs Job Widget
iJobs General

Recruitment Genius: Senior Web Designer / Front End Developer

£28000 - £32000 per annum: Recruitment Genius: This fast expanding web managem...

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Ashdown Group: Trainee Consultant - Surrey/ South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Ashdown Group: Recruitment Consultant / Account Manager - Surrey / SW London

£40000 per annum + realistic targets: Ashdown Group: A thriving recruitment co...

Day In a Page

Read Next
 

i Editor's Letter: Why it won’t be the i wot won it – our promise to you

Oliver Duff Oliver Duff
A relative of dead Bangladeshi blogger Washiqur Rahman reacts after seeing his body at Dhaka Medical College in Dhaka on March 30,  

Atheists are being hacked to death in Bangladesh, and soon there will be none left

Rory Fenton
No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat
Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

Saudi airstrikes are fuelling the Gulf's fire

Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

The only direction Zayn could go

We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

Spells like teen spirit

A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

If fashion is a cycle, this young man knows just how to ride it

British designer Jonathan Anderson is putting his stamp on venerable house Loewe
Number plates scheme could provide a licence to offend in the land of the free

Licence to offend in the land of the free

Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

From farm to fork in Cornwall

One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
Robert Parker interview: The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes

Robert Parker interview

The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes
Don't believe the stereotype - or should you?

Don't believe the stereotype - or should you?

We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor