European bankers urged to cut bonuses

The main regulator of the European financial markets encouraged the banks to moderation, recalling that in difficult times larger bonus pay is unethical. Writes FT, Commissioner for Internal Market and EU Michel Barnier said that banks should, in their actions to be responsible and moderate. "Banks, I would advise not to stand out in today's economic and social conditions. Banks need ethical standards that would limit the size of bonuses," - he stressed. Wishes of bankers from major European regulator came in handy, as the world's major banks are going to announce the size of bonuses for that week. For example, JP Morgan Chase and Goldman Sachs have already reserved large sums of money to pay its employees. Bonus Fund Goldman Sachs, is expected to reach $ 15 billion to be distributed among the 35 thousand people. JP Morgan is going to pay a $ 10 billion to its investment bankers. Leading European banks, which primarily addressed the Commissioner Barclays and Deutsche Bank, while announced financial results for 2010 in February, after which will be released and the size of bonuses. However, according to Barnier, Brussels will be closely monitored, whether banks fulfill the restrictions on bonuses, imposed last year. The entire 2010 European and U.S. regulators were trying to force the bankers to reduce the size of bonus payments, but had reached the half-hearted results. Official awards have been cut, but it has grown in proportion to the official part of his salary. However, the projected Armstrong International, bonuses at big investment banks of the Old World up to 2010 could be cut by 20-30%. Most affected staff middle management: their premium can be reduced by half. With the largest cuts of compensation may be faced bankers in the UK. Under the forecast of Center for Economics and Business Research, by the end of 2010 award from City bankers could reach 7 billion pounds against 7.3 billion pounds, paid in 2009. Source: RBC Daily