Euro MPs secure crucial deal to end Bankers' Bonus Culture
A crucial deal on new laws to end the risk taking culture in banking that led to the global economic crisis was secured today in Brussels.
The deal reached in a series of talks between Labour Euro MP Arlene McCarthy, and the negotiators from the Council and the Commission will mean that new laws on bankers’ bonuses will be implemented for the upcoming bonus season.
Said S&D Spokesman for Economic and monetary Affairs, German Euro MP Udo Bullmann: “At a time when governments are inflicting spending cuts on the public, including pay cuts for public sector workers, it would be obscene to allow the discredited bank bonus culture to continue”.
Said vice Chair of the Economic and Monetary Affairs Committee Arlene McCarthy:
“Two years on from the global financial crisis, these tough new rules on bonuses will transform the bonus culture and end incentives for excessive risk taking. A high-risk and short-term bonus culture wrought havoc with the global economy and taxpayers paid the price”.
“The public want banks to prioritise stability and lending over their own pay and perks. In the last two years the banks have failed to reform, and we are now doing the job for them.
“New capital rules will ensure banks are properly covering the risks they are running on their trading activity, including for types of investments like mortgage backed securities that were central to the crisis. Making sure banks put aside enough money to cover losses on high risk trading so that taxpayers never again have to bail out banks” .