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Goldman backs down on bank bonus delay

Jan 15 2013 Huw Jones, Reuters

Goldman Sachs has scrapped plans to delay paying bonuses to its bankers in Britain to exploit an income tax cut for top earners after Bank of England Governor Mervyn King criticised the move. Earlier on Tuesday, King chided the U.S. investment bank for considering a delay in bonuses until after April 6 when the top tax rate falls to 45 percent from 50 percent. "The delay had been under consideration and the decision was made today not to do it," a person familiar with the situation said. Goldman Sachs declined to comment. King's intervention ratcheted up the pressure on Goldman, which sparked a furore last week when the bank's plan emerged. "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 British lawmakers when asked about Goldman's plan. The head of the central bank said that while Goldman's plan was not

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