Bonuses must be curbed, says Europe’s top regulator
As banks announce their annual bonus pools in coming weeks, Europe’s top regulator urged them to “show moderation and responsibility”—before enumerating the consequences if they don’t. Michel Barnier, the European Union’s internal market commissioner who oversees financial services, said banks needed to act “in a responsible and moderate fashion” and that “banks in Europe would be well advised not to lose sight of the economy and society.” Barnier’s comments echo concerns over bankers’ pay as Wall Street institutions such as JPMorgan Chase and Goldman Sachs set aside billions of dollars for their employees. Barnier pointed to the restrictions on pay agreed to by member states and parliamentarians last year, but did not explicitly threaten any further rule-making on pay. However, he did note that Brussels is still considering the whole area of corporate governance in the financial services sector.