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EU agrees on new rules on bankers bonuses

Thursday, 21 March 2013
The EU Parliament and Ireland, which has the EU presidency, have put together the agreement that will put a cap on bankers' bonuses. This comes despite intense opposition from the UK.
Handelsbanken

From 2015, bankers' bonus will expect to exceed their annual salary. But if shareholders agree on a larger bonus, the bonus may have to be twice as big as the fixed salary.

The British have fought against the bonus ceiling, as well as European banks who believe they are disadvantaged in competition with the U.S.. There has been threats especially from the UK that "talent" and specific "skills" will move to places such as Hong Kong and Singapore. but authorities says that high bonuses has attracted reckless risk taking which has threaten economic activities of the economy as a whole. Authorities will love to see a lower risky and proper banking products being sold.
The agreement must now be formally approved at a meeting of EU countries' ambassadors. But it should be a formality after the economy and finance ministers at a meeting two weeks ago gave the ambassadors the mandate to finish the job.
by Scancomark.com Team

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