Economy
Monday, 08 September 2014
They are complicit in the great financial crisis: High bonus payments for bankers. The EU therefore makes every effort to limit these. Some British banks but always find loopholes. Commissioner Barnier will be accepted now.
The EU calls for the capping of bonus payments for bankers. But British banks do not adhere to it. EU Internal Market Commissioner Michel Barnier therefore wrote from Brussels, according to a fire letter to the European Banking Authority. This Barnier accuses the UK-based banks to pay so-called allowances in cash. These were hidden bonuses, Barnier criticized in his letter.
The cap on bankers’ bonuses had come into force at the beginning of the year. Accordingly, the variable remunerations or extra payments may not exceed the fixed salary. Exception: If approved, the bonus may not exceed twice the content
Some banks circumvent the new rules by paying their top employees, fixed allowances for normal content.. These include the major British banks Barclays, Bank of Scotland, Lloyds and HSBC. Barnier said in his letter of “strong concerns” about this practice and wrote to EBA chief Andrea Enria:. “It is important to now take a common proactive stance on this important topic”
EU now wants to reach through
In the spring, the Commission adopted criteria for the capping of bonuses should be applied. You define primarily what a so-called risk-takers is -. These employees of banks and investment firms apply the bonus cap
A worker applies, for example, then as a risk carrier, if his annual salary exceeds half a million euros or if he is one of the 0.3 percent with the highest salaries of the company. Other criteria relate to the function or work of Bankers. He belongs to the management body or he has such far-reaching powers that he can materially affect the credit risk of the institution applies the bonus cover for him.
The European Union wants the British banks shenanigans at the new frontiers for bonus payments not let go. Barnier announced a rapid and coordinated response to possible loopholes. In March, the European Commission had tried to close loopholes – but apparently without success
High bonuses are considered a cause of the financial crisis
More about <. / strong> The EU had brought the stricter rules after the collapse of U.S. bank Lehman Brothers in 2008 and the global financial crisis on the way. The aim was to make the banks more resilient. High bonuses for bankers are regarded as a trigger of the financial crisis 2008/2009 because investment bankers for money houses took risky transactions to which they themselves vigorously mitverdienten. Great Britain has fought from the beginning to the EU rules, because it fears for its financial center London – but was outvoted within the EU. Was brought by London against it. The British government criticized inter alia, the legal basis. Source: n-tv.de
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