Two HSBC directors quit in protest over new conduct rules - the fear of jail!

Two board members at HSBC’s UK unit are preparing to quit as part of a growing pushback against stiff new rules that would jail reckless bankers. 

 

The moves come two months after regulators unveiled proposals for a new regime to stamp out misconduct in the City, which came in the wake of the Libor rate-rigging scandal and the collapse of Royal Bank of Scotland and HBOS.

Responding to the departures, Andrew Tyrie MP, chairman of the Treasury Committee and a driving force behind the new regime, said: “The crisis showed that there must be much greater individual responsibility in banking. A buck that does not stop with an individual often stops nowhere.”

 The move underlines the disquiet in the City over the tougher stance taken by UK regulators in the wake of the financial crisis. Some senior finance executives are warning that more directors could quit over the new regime, which is much tougher than any equivalent in the US or Europe.

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