The European Union is to press ahead with planned banker bonus curbs that were opposed by the U.K. after Britain failed to water down a tentative agreement from last month.
Bloomberg reports that European Parliament lawmakers and Ireland, which holds the rotating presidency of the EU, kept bonus restrictions unchanged, as they sealed a deal yesterday overhauling bank capital and liquidity rules for the 27-nation EU.
'The most comprehensive and most far-reaching banking regulation in the history of the EU is ready for the final vote', Othmar Karas, the parliament’s lead lawmaker on the dossier said in an e-mailed statement.
The ban on bonuses more than twice fixed pay was a late addition to EU legislation to apply international bank capital and liquidity rules, known as Basel III, drawn up following the collapse of Lehman Brothers Holdings Inc. Wednesday’s accord in Brussels may enable the EU to start phasing in the Basel law by January, said an EU official, who asked not to be identified citing government policy.
Talks on the rules had dragged on for a year and a half before the Irish presidency and lawmakers negotiated the bonus agreement. The parliament had insisted that the legislation include restraints on pay to curb excessive awards and irresponsible risk taking.
Bonuses will be treated the 'same as before', Sharon Bowles, chairwoman of the parliament’s economic and monetary committee, said on her Twitter Inc. account, referring to last month’s tentative accord on banker compensation.
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