Reckless bank chiefs may be jailed

Reckless bank chiefs who damage the economy could face jail sentences under new measures under consideration by the government.

The Treasury said a new offence of corporate negligence is one option on the table as ministers look for ways of punishing bank chiefs who put major institutions at risk and damage the economy, reports Sky News.

Last month, FSA chairman Adair Turner called for tougher punishments to be meted out to bankers taking too many risks after the watchdog published its investigation into the near-collapse of part-nationalised bank RBS.

The FSA's report into RBS recommended no action be taken against the banks' bosses, concluding chief executive Sir Fred Goodwin and team had not broken any rules.

Meanwhile, the public backlash against bonuses is set to be reignited this week when banks reveal multi-billion pound pay-outs for 2011.