From Mr Philip Keevil.

Sir, There seems to be much support for the views expressed by the governor of the Bank of England, in which he laid a large portion of the blame for the current spate of write-offs by banks at the feet of compensation structures within these banks. Proprietary traders have been generously compensated for risking the bank's capital, in many cases for short-term performance based on year-end valuations that have yet to be realised. It is like giving a gambler a pile of chips and telling him that he can keep a slice of any winnings, but not to worry if he runs out, as you will replenish his chips.