UK Calls For Smaller Bonuses As Banks Shed Jobs

The Prime Minister of the U.K.,David Cameron, has called for an agreement between the government and the country’s banks over both remuneration and lending practices, according toThe Wall Street Journal. On Sunday, Cameron called for a “settlement” that would ensure “responsible levels of remuneration and proper agreements on lending for businesses.” Despite calling for “socially responsible” behavior on the behalf of banks, Cameron said he does not want to “bash the banks over the head,” adding that the banking industry should not become a scapegoat for the tough economic situation.

A separate report from theConfederation of British IndustryandPricewaterhouseCoopersshow that the U.K. financial sector is likely to continue shedding jobs during the first quarter of 2011. The CBI projected that 30,000 jobs were shed from financial services firms during the fourth quarter of 2011, which is based on its index reading of -48, which is the lowest since March 1993. The survey projected that a further 15,000 jobs are going to be cut by the end of March, and that drop would take employment levels to 970,000, which would be the lowest since data started in 1996.

Click here to read the story on bank bonuses from The Wall Street Journal.

Click here for coverage of the jobs survey from The Wall Street Journal.