Summary Box: Insurers urge restraint on banker pay

AP News
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Posted: Dec 06, 2011 11:24 AM
Summary Box: Insurers urge restraint on banker pay

CURB THE CASH: the Association of British Insurers, whose 300 members include major shareholders in banks, called for a fundamental review of pay and bonuses at the end of a difficult year in which banks' stock prices have fallen and several face huge payouts to compensate buyers of payment protection insurance.

BONUS BANKERS: The seven- and eight-figure bonuses pocketed by some bankers are a sensitive political issue, especially since taxpayers rescued Royal Bank of Scotland and Lloyds Banking Group during the credit crisis and continue to hold significant stakes in both banks.

STASHING IT AWAY: There is concern as well that banks should be hoarding cash to protect against the possibility that a European nation defaults on its debts or the 17-nation euro currency collapses.