Tuesday, February 9, 2010

German Cabinet Approves New Rules On Bank Pay, Bonuses

BERLIN (Dow Jones)--Germany's Cabinet approved Tuesday a bill that
would limit bankers' pay and bonuses in line with recommendations made
by the Group of 20 industrialized and developing nations.

The Finance Ministry said in a statement that the bill proposed
changes to laws on oversight of financial and insurance companies that
would take effect by October.

The new regulations would give Germany's financial services
regulator, BaFin, greater power to oversee pay and bonus distribution.
For instance, BaFin might have the power to block or curtail bonuses to
bankers that don't meet liquidity and credit requirements. Restrictions
might also be levied on employees of banks at risk of missing those
requirements, the statement said.Link

By Patrick McGroarty, Dow Jones Newswires;

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