Don't be too harsh on us, say bankers

Bankers today hit back at criticism from the Treasury Select Committee, claiming that new regulations on pay could damage the wider economy.

Angela Knight of the British Bankers' Association responded to a report from the committee that put the blame for the financial crisis squarely on the industry.

John McFall, who heads the committee, said: "Bonus-driven remuneration led to a lethal combination of reckless and excessive risk-taking. The design of bonus schemes was not aligned with the interests of shareholders and the long-term sustainability of the banks."

Bankers are guilty of self-pity, "portraying themselves as the unlucky victims of external circumstances", said the report.

Knight urged restraint in the drawing up of new rules, saying: "Other countries are watching us and none uses such pejorative language in its scrutiny of financial institutions."