Osborne to back tough new laws for bankers

The Chancellor George Osborne is to back proposals for harsher punishments for bankers who act recklessly and lead to the collapse of financial institutions.

According to reports, Osborne will endorse the plans today in his formal response to the Banking Commission's recommendations. He will speak in favour of a tougher corporate governance regime, including the strengthening of banks' boards, and will make it a criminal offence to run a bank in a "reckless manner". The FT said the key proposals from the commission, which was headed by Tory MP Andrew Tyrie, will be added to the banking reform Bill in the Commons. The Chancellor set up the commission last year in the wake of the Libor-rigging scandal, but he has also rejected some of its...