U.K. Lawmaker Seeks to Make Bank Directors Liable for Losses
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A lawmaker from Prime Minister David Cameron’s Conservative Party proposed a bill in Parliament today to make directors of U.K. banks personally liable for losses made by the institutions.
Steve Baker wants to enforce unlimited personal liability on bank directors and require them to post personal bonds as additional capital. His draft legislation would see their bonuses treated as bank capital and provide for financial institutions to become insolvent. Baker, backed by three other Conservative lawmakers, gained approval for the Financial Institutions (Reform) Bill to have a second reading on April 27 in the House of Commons in London.