"The most stringent curbs on bankers’ pay since the 2008 financial crisis are to be imposed by the EU" states the Financial Times. Ongoing talks on EU reforms to make banks safer are entering a decisive week. France is now backing the parliament’s demand for strict limits on bonuses that exceed salary, and a clear majority – which includes Germany – want to compromise so the bonus dispute does not hold up reforms of bank capital rules.
Britain circulated an informal position paper on Friday, suggesting alternative reforms that “build on the principle of a cap” . The UK paper argues that the parliament’s fixed ratio will encourage “large cash fixed salaries”, undermine financial stability and weaken existing claw back rules, which banks are beginning to enforce.
Please read the full article here. (Source: Financial Times)