Huge bonuses paid to City bankers was a factor in the credit crunch...

Huge bonuses paid to City bankers have contributed to the credit crunch, the chairman of HSBC has admitted.

Stephen Green said he 'quite agreed' that the rewards of £14billion in 2006/07 for London's financial institutions were excessive and contributed to the current 'painful' downturn Britain now faces.

Mr Green himself is said to have earned £1.25million - plus a £1.75 million bonus - last year.

And HSBC's annual report revealed that the five best-paid people at the bank earned total bonuses of £24.5million in 2007.

It is the first time one of the world's leading banking figures has said remuneration in the banking industry was a factor in causing the current financial problems. More...

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