Labour Reveals 10-Year Bank Bonus Clawback Plan

Bankers who engage in "inappropriate behaviour" could have their bonuses clawed back 10 years after they were paid if Labour wins the General Election.

Shadow chancellor Ed Balls said a Labour government would extend the UK's current seven-year "clawback" period - already seen as one of the toughest in the world - to at least a decade.

Mr Balls said the allegations swirling round HSBC's private bank in Switzerland - which date back to 2005 - underlined the need for an extended period.

Publishing Labour's banking reform paper, he said: "As we have seen in recent days, wrongdoing can take years to uncover. The current proposals to claw back bonuses are too weak and do not cover a long enough period of time.

"We will ensure people involved in misbehaviour and misconduct would have to give back their bonuses for at least a decade after they have been paid out."

Mr Balls said Labour would also use the proceeds of an expected increase in licence fees for the mobile phone spectrum to finance its British investment bank.

The plan would see an estimated £1bn over the next parliament channelled into the investment bank for funding small and medium-sized businesses.

The Conservatives have dismissed the proposals and said the Bank of England was already consulting on extending the clawback period to 10 years.

A Tory spokesman said: "A banking reform plan written by Ed Balls is like a fireworks safety guide written by Guy Fawkes - nobody will trust a word he says."