Bankers' pay needs to be reformed so they are no longer handsomely rewarded for deals that turn bad, the chairman of HSBC has warned.
Chairman Stephen Green told the BBC that the banking industry was too focused on short-term profits.
He said that current pay schemes did not reflect long-term performance.
He indicated remuneration was one of the causes of the credit crunch as some staff were paid too much for deals that ended up costing their banks a fortune.
Banks worldwide have lost around $300bn (£170bn) from investments related to the sub-prime mortgage crisis.
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