City's fury at Darling plans to curb banks' bonus culture

The Evening Standard
16 November 2009

There was growing anger across the City today over plans the Chancellor of the Exchequer, Alistair Darling has to "tear up" bankers' bonus contracts. Darling's harsh measures are due to be unveiled in the Queen's Speech on Wednesday. But a top City lawyer warned that the new legislation could "destroy" the City The Chancellor is set to outline tough new rules on bankers' pay and bonuses which in effect will allow the City's regulator - the Financial Services Authority - to cancel any new contract of employment which have been drawn if the FSA believes that the terms of the contract encourage too much risk taking.

"All this is very politically correct and topical," said Clive Zeitman, head of commercial litigation at Stewarts Law who has recently been at the centre of major legal battles of bankers' bonuses. "But it would be ludicrous if [the Government] introduced such draconian legislation. If you disincentivise the City you will destroy it and that would be disastrous for everyone."

Please click the pdf below to read the full article as published in the Evening Standard.