U.K.’s Labour Threatens to Restrict Bankers’ Bonuses If Elected

(Bloomberg) -- The U.K. Labour Party would seek to ban excessive bonuses for bankers if it came to power, unless the financial industry takes steps to curb excessive payments.

John McDonnell, Labour’s Treasury spokesman, told the Financial Times he wanted to issue a warning to the finance industry that he would “take action” if it “hasn’t learnt it’s lesson.” A spokesman for McDonnell confirmed the details of the interview published on Friday.

McDonnell also told the newspaper he would start a consultation on measures including increasing shareholder power to restrict the size of bonuses.

McDonnell, a socialist, has frequently spoken out against excesses in the banking industry and took part in protests against the sector, welcoming the occupation by protesters of UBS Group AG in 2011. Since becoming shadow chancellor of the exchequer, though, he has softened his image and tried to engage with banks.

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