News Summary: UK bank panel urges better standards

News Summary: UK banking commission says bankers must take more responsibility

Associated Press

ACCOUNTABILITY: After major scandals involving rigging rates, money laundering and rogue trading, an influential British parliamentary committee recommended that senior bankers should be held more accountable for their bank's actions.

REWARDED FOR FAILURE: The committee argues there has been a "misalignment of incentives," in the financial industry and that pay structure had become "dysfunctional." In this climate, lapses of standards shouldn't be surprising.

JAIL TIME: The report suggests creating a new criminal offense of "reckless misconduct" that could carry a prison sentence. Among many other recommendations is creation of a code that defers bonuses for longer and better aligns risk and rewards. The report will form the basis for legislative and other action.

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