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dipsydoodle Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-07-10 09:06 AM
Original message
Bank bonus limit agreed by European Parliament
Source: BBC News

The European Parliament has approved a deal placing new limits on bankers' bonuses from next year.

Under the deal agreed by the EU members in June, bankers will receive no more than 30% of their bonus immediately and in cash, a limit that falls to 20% for larger bonuses.

Remaining payments will be deferred and linked to long-term performance.

Hedge funds will also be covered by the new rules. But there will be no cap on what bankers can be paid.

Read more: http://news.bbc.co.uk/1/hi/business/10534195.stm
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w4rma Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-07-10 09:32 AM
Response to Original message
1. Extremely good. We need to follow suit. (nt)
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DJ13 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-07-10 11:11 AM
Response to Original message
2. While I like restricting their outrageous bonuses......
this part "Remaining payments will be deferred and linked to long-term performance" is exactly what caused the current crisis.

The banks and financial institutions did anything they could get away with in order to increase their bottom lines, and tying the balance of the too high bonuses to increasing the bottom line seems to me to run counter to cleaning up the current crisis.
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jpak Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-07-10 12:49 PM
Response to Original message
3. Europe puts limits on banker bonuses
Source: Christian Science Monitor


A crackdown on unlimited bonuses for bankers and financial traders was approved today by members of the European Parliament in a move that gives the 27-country European Union one of the world’s toughest regimes in the field.

The new rules are both a response to public outrage at the size of the payouts and a bid to tackle a risk-taking culture blamed for the global financial meltdown.

The EU will require 40 percent to 60 percent of bonuses to be deferred for three to five years. Half of any upfront bonus will be paid in shares or in other securities linked to the bank’s performance so that the money can be recovered if the bank runs into difficulty. Banks that get government bailouts will have to report how many of their employees make more than 1 million euros ($1.26 million).

But while today’s vote rubber stamps measures that were originally agreed to by the G20 nations and European Union member states last month, much will depend on how strictly regulators in individual EU states choose to enforce the rules after finance ministers meet next week to endorse the new regime.

<more>

Read more: http://www.csmonitor.com/World/Europe/2010/0707/Europe-puts-limits-on-banker-bonuses
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valerief Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-07-10 12:49 PM
Response to Reply #3
4. That means the US will probably double bankers' bonuses. nt
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RKP5637 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-07-10 12:49 PM
Response to Reply #4
5. No doubt, no doubt! n/t
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pattmarty Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-07-10 12:49 PM
Response to Reply #3
6. Hooray!!! creating jobs in America for MORE multi billionaires. I just fucking.........
..........love getting "trickled on".
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