UK to Challenge EU Banker Bonus Cap

Britain is to challenge an EU agreement to slash bankers’ bonuses at a meeting of European finance ministers next week after Boris Johnson condemned the proposal as a “deluded measure”.

Amid fears that the EU agreement could deal a hammer blow to the City of London, David Cameron said EU regulations needed to be flexible enough to allow international banks to operate in Britain and the rest of the European Union.

George Osborne or the Treasury minister Greg Clark will represent Britain at the meeting next week to relay what No 10 described as real concerns about the proposal.

The agreement in Brussels came as the Royal Bank of Scotland posted losses of more than £5bn after paying out more than £600m in bonuses. No 10 said it had imposed cash limits of £2,000 on bonuses at RBS and Lloyds and was giving a greater say to shareholders in all banks.

The prime minister’s spokesman said: “Bonuses are very significantly down on where they were in 2010. So you are seeing real responsibility and restraint.”

via Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza