New law sets out seven-year jail terms for bankers guilty of reckless misconduct
2 October 2013 1:47am
TOP BANKERS could be jailed for up to seven years if they are found guilty of a new offence called “reckless misconduct in the management of a bank”, changes to the Banking Reform Bill published yesterday revealed.
The crime would cover staff in the new Senior Managers Regime who made decisions that led to a bank’s collapse, or who failed to stop others from making those choices, according to the proposals.
The test for guilt would be similar to that of corporate manslaughter, and require the banker to have been aware of the risk of collapse when making the decision. Those found guilty would also face unlimited fines.
Yesterday the government published 86 amendments to the bill, one of which will see the so-called electrification of the banking ringfence hugely accelerated.
Banks that try to undermine the ringfence, which separates retail operations from investment banking, would face the threat of being broken up by the government – a process that has been cut from seven years to just one under yesterday’s changes.
And the government is about to amend the bill to set up a new controller of the payments system, City A.M. understands, taking control from the largest banks.
In other news
London’s cabbies are taking on Uber, and TfL
TAIWANESE insurer Fubon Life is to buy the home of Madame Tussauds wax museum in Marylebone for £348.8m.
British students with ambitions to be the next Paul Krugman should be setting their sights on obtaining a degree [Read more]
June 5 will be the next crunch point in the Greek debt talks. [Read more]
The customer is king when it comes to winning amid an increasingly competitive retail landscape. [Read more]
Top tourist attraction Madame Tussauds Marylebone site has been snapped up by a Taiwanese insurer in a multi-million [Read more]
The Chinese city of Guangzhou may have banned Uber, but that hasn’t stopped its municipal government setting [Read more]
Labour has performed a balletic U-turn this morning, abandoning its opposition to EU membership referendum. [Read more]
Greece’s interior minister has said that the country cannot afford its 5 June payment to the International Monetary [Read more]
Young people aged 16 and 17 years old should be given the chance to vote in a EU referendum, according to the [Read more]
The Bank of England is carrying out a confidential investigation into what would happen if the UK left the European [Read more]
This year's Eurovision Song Contest will feature an addition to the normal line up – for the first time ever, [Read more]
Tonight is the 60th Eurovision Song Contest, and once again we're in for an evening of cheesy music and crazy [Read more]
The Eurovision Song Contest is getting more and more expensive, despite Europe's decline into austerity. [Read more]
There were delays of up to 30 minutes to trains in and out of Kings Cross Station, after the station was re-opened [Read more]
When a 20-year-old footballer publicly declares he wants to leave a club and his agent hurls insults at one of [Read more]
The outbreak of bird flu in the US is leading to an unprecedented situation for companies reliant on eggs – [Read more]
Germany's finance ministry has denied reports it was considering offering Greece its own parallel currency. [Read more]
Chancellor George Osborne was given a boost today, as higher tax receipts helped shrink the deficit by more than [Read more]
Beleaguered spread-betting firm Plus500 today suspended trading in its shares on London's junior market, following [Read more]