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Jail reckless bankers, say MPs and peers

Jail reckless bankers, say MPs and peers
Bankers found guilty of reckless misconduct should be jailed, a major report by MPs and peers says today.

The Parliamentary Commission on Banking Standards argues "deep lapses in standards have been commonplace" in the sector and recommends key measures to overhaul standards.

The Commission also calls for a new licensing regime meaning traders who mis-sell financial products receive the full range of penalties open to the regulators.

Speaking this morning, Treasury minister Greg Clark said the Government intended to respond to the report within the next four weeks.

Chair of the Commission Andrew Tyrie stressed that jailing for bankers might not be needed because the mere threat of prison might be enough to stop reckless behaviour.

"Individuals should be much more clearly responsible for the particular risk that may go wrong," he told the Today programme. "We need to clarify which senior banker is responsible for which risk."

But on the same programme, former City Minister Lord Myners predicted that despite the report, little would change in the sector for the foreseeable future.

“What I think I can say is that very little will change for several years as a result of the Tyrie report," he said.

Green Box: Jail reckless bankers, say MPs and peersClick to open

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