UK: Bankers may be jailed under proposed new UK law

Published on BBCnews/Business, October 1, 2013.

Senior bankers could face criminal charges for “reckless” misconduct leading to the fall of a bank, under new UK government plans. Chancellor George Osborne set out the charges in 86 amendments to the Treasury’s Banking Reform Bill. The changes are due to come into effect in 2014. 

They include laws separating the High Street banks from their trading arms in the City in order to protect taxpayers, said the government.

Corporate manslaughter:

Mr Osborne’s additions to the bill are partly in response to the Libor rigging scandal, where traders at some banks sought to manipulate interest rates in their favour.

Major reforms will ensure banks work for the economy and consumers, while consumers will be empowered by greater competition within the banking sector, said the Treasury.

Regarding the criminal sanctions, a Treasury spokesman said: “The offence will only apply to behaviour which falls far below the standard that could reasonably be expected of a person in that position – this is similar to the test for corporate manslaughter.”

They added: “Today’s amendments mark the final part of the government’s plan for the biggest ever overhaul of the UK banking system.”

They also highlighted how the Bank of England was already “back at the centre of supervision” and said the bill would “drive up standards and increase financial stability” … //

… (full text).

Links:

Government publishes draft Banking Reform Bill, on Gov.uk, press release, Oct 12, 2013;

Turn RBS into a network of community banks, based on the German model, on Left Foot Forward, by Carl Packman, Oct 15, 2013.

US government shutdown impacts millions of workers, on World Socialist Web Site WSWS, by Andre Damon, Oct 15, 2013;

Britain’s Socialist Workers Party endorses Scottish capitalism, on World Socialist Web Site WSWS, by Steve James, Oct 15, 2013;

Rosa Luxemburg on the Execution of Marcin Kasprzak
, October 14, 1905 – Published on Rosa Luxembourg Blog, by , October 14, 2013.

(see also: Welcome to our new blog: politics for the 99%).

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