Oops!!! European Union agreement to cap bankers' bonuses is setback for City [View all]

[malaise]

http://www.guardian.co.uk/business/2013/feb/28/european-union-cap-bankers-bonuses
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The UK financial sector was dealt a withering blow on Wednesday night when the European Union agreed on moves to slash the bonuses that may be paid to bankers, defeating strong Treasury opposition to the new rules.

A meeting of officials from the 27 countries of the EU with MEPs and the European commission agreed to cap bankers' bonuses broadly at a year's salary, with the proviso that the bonus could be doubled subject to majority shareholder approval. The decision to limit the annual bonuses that may be paid to bank employees came despite stiff British resistance to the move and is certain to have a strong impact on the "fat cat" culture of the City of London, the EU's financial centre.

"For the first time in the history of EU financial market regulation, we will cap bankers' bonuses," said Othmar Karas, an Austrian MEP involved in the negotiations between the parliament and the governments.

The agreement has still to be approved by EU governments before coming into force next year. While details may still be tweaked, it is expected that the main points will become EU law.
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