Osborne backs prison for bad bankers

George Osborne today gave his backing to a raft of proposals that hope to raise standards in banking, including the threat of prison for high-level executives and the ability to retrieve bonuses and pensions at a later date.

The chancellor said he would implement the main proposals set out last month by the Banking Standards Committee, including new ways to monitor bankers' behaviour.

The key suggestions will be included in the banking reform bill currently working its way through parliament.

"Cultural reform in the banking sector marks the next step in the government's plan to move the whole sector from rescue to recovery and ensure that UK banks demonstrate the highest standards, and are able to support business and drive economic growth," Osborne said.

"The government is determined to raise standards across the banking industry to create a stronger and safer banking system."