German plans to jail bankers

City A.M. Reporter
THE GERMAN government is considering a new law to imprison bank executives for up to five years if they are found guilty of reckless behaviour that puts a bank at risk.

“We’ve found a regulatory gap here that we want to close,” a senior government official in Berlin said yesterday. According to the draft banking law amendment, which the cabinet discussed yesterday, a manager may face a jail sentence if he deliberately ignored risk rules and thereby risked the collapse of a financial institution.