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Reckless bank bosses face jail under gov't proposals
by Alex Steger on Oct 02, 2013 at 07:44
Senior bankers found guilty of reckless misconduct could face up to seven years in prison under new government plans.
The proposal has been included as one of 86 amendments to the Treasury’s Banking Reform Bill.
The plans are set to become law next year and mark the first time senior bankers will be held criminally liable for causing institutions to fail.
The amendment follows pressure from the Parliamentary Commission on Banking Standards which published a seven-volume report in June in which it recommended a the new criminal offence of reckless misconduct in bank management.
At the time, the Commission’s chairman Andrew Tyrie said: ‘Under our recommendations, senior bankers who seriously damage their banks or put taxpayers’ money at risk can expect to be fined, banned from the industry, or, in the worst cases, go to jail.’
The Bill also includes measures requiring the Financial Conduct Authority to take a tougher approach to sanctioning senior appointments, while the Prudential regulatory Authority will be given a competition remit.
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