03 July 2010

Labour MEPs vote to limit bankers' bonuses

Labour Members of the European Parliament have backed plans that will limit bankers' bonuses.

Labour MEP and vice Chair of the Economic and Monetary Affairs Committee Arlene McCarthy commented "Two years on from the global financial crisis, these tough new rules on bonuses will transform the bonus culture and end incentives for excessive risk taking. A high-risk and short-term bonus culture wrought havoc with the global economy and taxpayers paid the price".
"The public want banks to prioritise stability and lending over their own pay and perks. In the last two years the banks have failed to reform, and we are now doing the job for them.
“New capital rules will ensure banks are properly covering the risks they are running on their trading activity, including for types of investments like mortgage backed securities that were central to the crisis. Making sure banks put aside enough money to cover losses on high risk trading so that taxpayers never again have to bail out banks” .

Read more
BBC: EU agrees bank bonuses limit deal
Progress: No more ‘Fred the shred’ bonuses

Your Labour Members of the European Parliament
London is represented by two Labour MEPs - Mary Honeyball and Claude Moraes.
All Labour Party MEPs are members of the biggest group within the European Parliament - the Party of European Socialists