LONDON Jan 15 Bank of England Governor Mervyn
King said on Tuesday it was "depressing" that banks like Goldman
Sachs were planning to delay paying bonuses this year
until after a drop in income tax rates.
Goldman Sachs is considering such a delay in Britain until
after April 6, when the top rate of income tax falls to 45
percent from 50 percent.
"I find it a bit depressing that people who earn so much
seem to think that it's even more exciting to adjust the timing
of it to get the benefit of the lower tax rate," King told a
panel of UK lawmakers when asked about Goldman's plan.
He said while this was not unlawful, the delay was being
done at a time when the rest of society was suffering most from
the consequences of the financial crisis.
Britain had to shore up and nationalise banks during the
2007-09 financial crisis, sparking public anger over bonuses
when the government is freezing public pay and cutting
"I think it would be rather clumsy, lacking in care and
attention to how other people might be," King told parliament's
Treasury Select Committee.
"And in the long run, financial institutions, like all large
institutions, do depend on good will and the rest of society.
They can't just exist on their own."