British MPs are set to question HSBC Chairman as they continue with their investigation of bonuses paid to top bankers and lending to businesses to boost the economy.
Along with the head of Co-Operative Financial Services and Nationwide Financial Services – UK’s biggest mutually owned savings and loans society, HSBC Chairman Douglas Flint will be presenting evidence of progress.
Since the beginning of the year, a host of top bankers have appeared before the committee defending their sector in the face of growing public hostility towards fat bonuses and their apparent unwillingness to lend to small businesses.
The new head of another British biggie Barclays Bank’s Bob Diamond had appeared before the committee and had stir up a controversy saying bankers should stop apologizing for their profession.
It may be recalled that two of the four largest British banks – Lloyds and Royal Bank of Scotland had received huge government bailout packages and are partly government owned.
Last week the boss of UK Financial Institution or UKFI – the government body that owns £67 billion worth bank shares, told the committee that it’s in the interest of taxpayers that state owned banks pay big bonuses. It helps them retain top talent and remain profitable, he reasoned.