'There Will Definitely Be A Bonus Cap - It's Just A Question Of How Much'

Dunce's Cap

The European parliament and EU states could agree on Wednesday to impose caps on bankers' bonuses.

Reuters reports that negotiations to introduce a cap on bankers' bonuses in the European Union resume on Wednesday, a week after European lawmakers and ambassadors from countries failed to reach a deal.

A majority of states in the 27-member bloc would have to support a measure passed by the European parliament to make it law.

European lawmakers see a cap - possibly limiting bonuses to double base salary - as the only way to rein in runaway pay, reduce incentives for risk and make banks safer.

'A cap is the only way we will see bonus restraint', said Arlene McCarthy, the British member of the European Parliament who pushed for pay reform.

'The parliament is not prepared to budge. Legislators have got fed up because they don't see any restraint in the bonus culture'.

Hit the link below to access the complete Reuters article:

EU moves closer to imposing caps on banker bonuses

Barclays loses "confidential" treatment of regulatory fight

Three men arrested in UK insider dealing probe

image: © Candie_N

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