EU leaders call to cap bonuses
8:25 pm - September 3rd 2009
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The Group of 20 richest nations must adopt “binding rules” to regulate bank behaviour, the leaders of the UK, France and Germany have said.
UK Prime Minister Gordon Brown, French President Nicolas Sarkozy and German Chancellor Angela Merkel made the comments in a joint letter. They also agreed to explore ways of limiting bonuses at banks to prevent future financial meltdowns.
The leaders also said banks could not go on as if the crisis never happened. Bonuses will be on the agenda when the G20 leaders meet in Pittsburgh later this month.
…more at the BBC
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Reader comments
I hope this becomes a reality.
Horse? Door? Bolted?
At the moments banks are using the capital provided by Government and liquidity provided by central banks to trade and make lots of money. In a depressed market like this there are excellent opportunities to make money in all manner of ways. Some bankers may even be able to earn their money.
This is in marked contrast to a few years ago, where money was made on speculation, blowing up and shorting bubbles, by over-leveraged institutions. This was when limiting bonuses may have helped, although probably not much.
Bonuses are just a symptom, capping them is just a fig leaf to cover to giant white elephant cock in the room. Finance needs to be repressed for a number of reasons, and if finance was shrunk then bonuses would shrink without the need for any stupid limits which would likely be sidestepped.
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Liberal Conspiracy
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