The EU called the banks to display “moderation and responsibility” when repaying annual bonuses, - The Financial Times says. According to the EU Commissioner of Financial Affairs Michel Barnier, the European credit organizations should observe some certain ethical principles and not lose the public relations and economic situation control.
Therefore, the EU reacted to decision of several major banks from Wall Street to repay multibillion award fees to their employees. Thus, last week Goldman Sachs announced about allocating 10 billion dollars for bonuses. JPMorgan Chase is expected to reserve over 15 billion dollars for 35 000 workers. The largest European banks, such as Barclays and Deutsche Bank will render accounts for the past year not earlier than in February. However, Barnier reminded that in any case at bonuses repayment the financial organizations will have to follow stiff restrictions concerted with the EU in 2010. That is to say, from 40 to 60% of bonuses must be paid out to bank managers during3-5 years. Apart from this, the size of bonuses directly depends on indicators of the bank’s activity. Meanwhile, a few days ago the Barclays Head Robert Diamond stated that the bankers have to stop apologizing for their high salaries and bonuses. In his words, credit organizations cannot cease award fee repayment, as it can put a significant impact on the whole banking sector.
In the global crisis period the banks were criticized for multibillion bonuses. In particular, some specialists were relating high bonuses directly to the downturn, as the bankers chasing high payments were bearing excessive risks.