GlobeTracker| It’s not a good day for the European Boys Club. Perhaps testosterone will take a pre-late-afternoon nosedive after members of the European Parliament cracked down with tough new rules on the cast of financial characters, enduring a big part of the blame game for the world’s fiscal crisis.
The EU will require 40 percent to 60 percent of bonuses to be deferred for three to five years. Half of any upfront bonus will be paid in shares or in other securities linked to the bank’s performance so that the money can be recovered if the bank runs into difficulty. Banks that get government bailouts will have to report how many of their employees make more than 1 million euros ($1.26 million). via Christian Science Monitor
There is some leeway in how the rules are administered, but there’s no celebration flowing today, in the financial corridors of power across the pond. Et tu, Brutus?