Robert Diamond Jr. entered Britain's raging public debate about bankers’ bonuses:  financial firms should use restraint on pay;  stop blaming bankers for the weak economy.  Mr. Diamond said it's time to move on from bashing and blaming bankers and to let banks and the private sector create jobs and economic growth at a time when the British government planned to cut thousands of public sector jobs.

Some lawmakers say the remarks lacked accountability for the financial crisis and that the banks continued to pay large bonuses while people on lower incomes struggled.  While admitted to mistakes by the banking sector, Diamond argued that "banks have learned throughout this process," and that there was "no lack of effort on our part to recognize and be responsible and to be sensitive to this issue" of bonuses.

Mr. Diamond declined to say whether he would forgo his bonus this year, or comment on reports in the British media that his bonus could be as high as $12 million. 

Mr. Diamond said that he was “aware of the emotion around bonuses” and pledged to “show restraint” when it came to pay.  But he added that, as a businessman who runs a business, the decision on bonus size needed to balance expectations of customers, shareholders, employees and regulators. 

The British government has been meeting with banking executives in recent months to discuss bonus payments, which are due in the Q1 of 2011.  Prime Minister David Cameron said on Sunday that banks “should pay smaller bonuses” and be more “socially responsible.”

In a step to make its compensation more investor-friendly, Credit Suisse said on Monday that it would pay a greater amount of its bonuses in deferred compensation and more of it in stock rather than cash.   [NYT Dealbook, 1/11]