Posted on 02/15/2013 1:13:49 PM PST by Olog-hai
The European Union and the United States agreed on Thursday to implement the new global Basel III capital adequacy rules for banks as soon as possible, EU financial services chief Michel Barnier said after a meeting in Washington.
The Basel rules are the world’s main regulatory response to the 2007-09 financial crisis, aimed at preventing a repeat crisis where banks had to be bailed out by their governments. …
An EU official said ambassadors from the 27 member states meeting on Thursday also backed proposals for a capping of bankers’ bonuses to no more than the equivalent of their fixed salary, a so-called 1:1 ratio, although the bonus could be doubled if backed by a simple majority of shareholders at a meeting where two thirds of shares are represented. …
(Excerpt) Read more at reuters.com ...
>>27 member states meeting on Thursday also backed proposals for a capping of bankers’ bonuses to no more than the equivalent of their fixed salary, a so-called 1:1 ratio
The last time politicians were screaming about bonuses, the banks just rolled the average bonus into the fixed salaries. All this will do is increase the bankers salaries across the board and penalize the productive ones since they can’t be rewarded for their efforts.
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