Financial crisis 'not due to bonuses alone'

Bank bonuses contributed to the financial crisis but were not its main cause, the head of the City watchdog has said.

In his Mansion House speech in London, Financial Services Authority chairman Lord Turner stated there was a need to "move beyond the demonisation of overpaid traders".

Instead he said "ill-designed policy" had been "a more powerful force for harm than individual greed or error".

Earlier Business Secretary Vince Cable warned that banks could face more taxes if they pay out "outrageously large" bonuses.

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