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Bank of England's Carney says may need to regulate bankers' fixed pay
[SINGAPORE] Regulators may need to look at new ways to regulate the fixed pay of bankers as well as their bonuses so that it can be clawed back in the event of wrongdoing, the governor of the Bank of England said on Monday. "Standards may need to be developed to put non-bonus or fixed pay at risks," Mark Carney said in a speech in Singapore.
His comments came less than a week after five banks in different countries were fined a total of US$4.3 billion for failing to prevent traders from trying to rig the foreign exchange market.
Regulators have made a series of reforms to financial sector bonuses in recent years, bringing in rules to claw them back if a banker misbehaves and limit their size but have not looked at their fixed compensation.