–Barnier Comments Come As EU Parliament Approves New Rules
BRUSSELS (MNI) – The European Parliament’s decision to approve new
rules on bank bonuses sends a strong message to the financial sector and
will help to limit the excessive risk-taking culture which underpinned
the crisis, European Commissioner for Internal Markets, Michel Barnier,
said on Wednesday.
Lawmakers in the European Parliament Wednesday voted in favour of
new legislation that stops banking insitutions from paying big bonuses
in full, instead allowing them to pay only 30% of a bonus upfront, with
the remainder delayed for 3 an 5 years and linked to performance.
“The requirements on pay and bonuses send a strong political
message: there will be no return to business as usual,” Barnier said in
a statement.
“Banks will need to change radically their practices and the
mentality that have led in many cases to excessive risk-taking and
contributed to the financial crisis,” he added.
Many European policymakers – including Barnier – say excessive
risk-taking and short-termism in the financial industry were part of the
cause of the recent financial crisis.
The new rules on pay are part of a wider crackdown on the banking
sector, which aims to increase transparency and improve regulation.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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