Reckless bankers to be targeted in government legislation

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The government will use legislation currently going through Parliament to introduce recommendations on bankers' bonuses and criminal penalties for irresponsible bankers.

Opposition leader Ed Miliband pressed David Cameron on whether he supported proposals in a report by the Parliamentary Commission on Banking Standards.

The report said senior bankers guilty of reckless misconduct should be jailed, and some bonuses should be withheld for up to 10 years.

Mr Cameron told the Commons he will implement the report's findings in the Banking Bill, during prime minister's questions on 19 June 2013.

"We will be using that bill to take these important steps. The key thing is we have that opportunity," he told MPs.

Labour said it would put forward its own amendments if the government failed to act.

Mr Miliband went on to criticise a "64%" rise in business and financial services bonuses in April compared to the previous year, blaming it on a cut in the top rate of tax to 45p.

The prime minister retorted that bonuses today are" a fifth of what they were" under Labour.

Mr Miliband said the PM was "dragging his feet" on banking reform but Mr Cameron accused him of "another display of extraordinary weakness".

Opening the session, Mr Cameron announced that BT chief executive Ian Livingston will be appointed to the government as trade minister.

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