The weekend press here in the UK is all over the plans by the regulator to permit the extension of the time period to take back banker bonus in certain instances out to 10years (for misconduct and risk management failure) and out to 7years for excessive risk taking. Such clawback clauses are likely to be enforced via employment contracts entered into by staff members as of January 1st 2016.
Some folks - including obviously bankers themselves - feel this is over the top (OTT). The Weekend FT is quoting one as saying "You become liable for everything delegated under your areas of activity...You're putting all your assets at risk". Another suggested many people could end up losing their home if required to payback bonuses. Are such rules OTT or do you think they are a step towards building a true culture in banking, which have been plagued by conduct issues?
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