A group of key EU finance ministers will today launch an assault on the rewards earned by bankers and top managers in a move that poses a potential threat to the City of London. A confidential document prepared for the gathering in Brussels finds the "short-term" pay structure of modern capitalism has become deformed, causing firms to take on "excessive risk" without regard to the interests of stakeholders or society. While there is no concrete legislation on the table, ministers are eyeing curbs on stock options, bonuses and golden parachutes. The move is a clear sign that the EU noose is tightening on bankers, funds and corporate elites that have enjoyed light-touch regulation.
A confidential document prepared for the gathering in Brussels finds the "short-term" pay structure of modern capitalism has become deformed, causing firms to take on "excessive risk" without regard to the interests of stakeholders or society.
While there is no concrete legislation on the table, ministers are eyeing curbs on stock options, bonuses and golden parachutes.
The move is a clear sign that the EU noose is tightening on bankers, funds and corporate elites that have enjoyed light-touch regulation.
...ministers are eyeing curbs ... The move is a clear sign ...
The move is a clear sign ...
They must be sipping unwatered drinks as they select the segments that the random phrase generator submits to them. -- eyeing curbs is a clear sign -- wow.
Talking about retroactive confiscation and penalties for the ramifications of their anti-social behavior might be a clear sign that there is someone serious about tackling the problem, but no amount of talk or eyeing amounts to much more than the moral equivalent of bad journalism.
EU governments are paying close attention to a law going to the Dutch parliament this month. It imposes a 30pc supertax on pay packages above €500,000 (£398,000) and limits bonuses and stock options to 100pc of pay - far below the windfalls made by UK-based traders and bankers at the height of the credit bubble.
Now that the bubble has burst and the money stolen, they are willing to talk about closing the barn door. Well, at least it will be something for the lobbyists and legislators to water down in the future, hopefully keeping them too busy to create war machines and other financial boondoggles. Never underestimate their intelligence, always underestimate their knowledge.
Frank Delaney ~ Ireland
a move that poses a potential threat to the City of London.
Which apparently has declared de facto economic and legal independence from the UK and from Europe.
But I think we knew that already.
