Brussels is calling the shots over banker payouts

first_img MUCH of the rhetoric surrounding bankers’ bonuses is just that: rhetoric. David Cameron yesterday said that he didn’t want to micromanage British banks, a sentiment that should be welcomed, but the truth is that politicians in Brussels – not Britain – really call the shots when it comes to variable remuneration.For the Committee of European Banking Supervisors has imposed on London the most draconian bonus regime in the world. City watchdog FSA is charged with implementing the code, although in truth it is just doing Brussels’ bidding. Essentially, the rules – which came into force at the start of the year – prevent banks and other “systemically important” firms from paying more than 30 per cent of a bonus in upfront cash, shrinking to 20 per cent for particularly high payouts. Guaranteed bonuses – excluding golden hellos – have also been banned.That’s why it should come as no surprise that Stephen Hester, the boss of RBS, or Bob Diamond, Barclays’ chief executive, are unlikely to take significant cash bonuses this year. Reporting in the mainstream media rarely mentions the CEBS rules, nor the damage they will do to London’s standing as a global financial centre (as Europe’s pre-eminent banking hub, London stands to lose far more than Paris, Berlin or Madrid). This silence suits Britain’s political class perfectly. On the Andrew Marr show yesterday, the Prime Minister was only keen to take credit for a “very tough set of rules on bonuses”. Of course, he failed to mention that these rules – like so many of our laws – were written by Europe, and have absolutely nothing to do with British legislators. When bonuses are paid in shares or deferred – as they have to be under the new regime – the coalition will surely take credit; it will claim that it managed to get the banks to show restraint in the face of terrible largesse. The government will also take credit for the fact that the overall bonus pool for 2010 will be lower than a year earlier, although this has more to do with lower investment banking profits that the government’s influence. Sadly, the real issue – that this bonus regime will lead to a flight of top banking talent to competing financial centres such as New York, Hong Kong and Singapore – will be brushed under the carpet. [email protected] Share More From Our Partners A ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2‘The Love Boat’ captain Gavin MacLeod dies at Brussels is calling the shots over banker payouts Sunday 9 January 2011 11:07 pm Tags: NULLcenter_img whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’DefinitionTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farmthedelite.comNetflix Cancellations And Renewals: The Full List For whatsapp Show Comments ▼ KCS-content last_img