Tuesday September 2, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
EU misses Basel bank rules deal, will revive talks next week

The European Union failed to seal a deal on Basel bank rules after disagreeing on bonuses, capital requirements for big lenders and powers available to the European Banking Authority at talks in Brussels on Tuesday.

Lawmakers from the European Parliament and diplomats agreed to reconvene on Feb. 27 after their negotiations ended without a deal on how to implement components of Basel bank regulations in the bloc.

“We are not ready now,” Othmar Karas, the legislator in charge of the EU parliament’s work on the rules, told reporters. “I think the council had no mandate to finalize” the discussions, he said, referring to the grouping of EU governments currently chaired by Ireland. Still, Karas said that the talks did find consensus on the need to phase in a liquidity ratio by 2018, one year ahead of the schedule agreed on last month by global regulators.

The EU has struggled to agree on legislation to apply the international standards on capital, known as Basel III, which were published in 2010 as part of efforts to prevent any repeat of the financial crisis that followed the collapse of Lehman Brothers Holdings Inc.

EU lawmakers have insisted that the EU legislation to implement Basel III include curbs on variable pay as part of a quest to reshape lenders as utilities rather than money-making machines.

Members of the assembly’s economic and monetary affairs committee called last year for an outright ban on bonuses that exceed fixed pay.

“Imposing a cap on the ratio of variable to fixed pay runs a high risk of increasing fixed salaries,” Isabel Pooley, a lawyer at CMS Cameron McKenna, said in an e-mailed statement.

Governments sought to reopen a draft deal reached in December by the assembly and Cyprus, which then held the EU presidency, to cap banker bonuses at twice fixed pay. Under that proposal, bonuses exceeding fixed salary would be allowed only if the majority of a bank’s shareholders voted in favor.

Several nations, including the U.K., opposed that plan at a meeting last week. The British proposal included retaining existing EU rules that require some portion of bonus awards to be deferred and ensuring that payouts can be clawed back, according to officials.

The Basel Committee on Banking Supervision brings together banking regulators from 27 nations including to the U.S., U.K., and China to coordinate their prudential rule-making.

In anticipation of tighter capital rules, lenders are selling shares, eliminating jobs and trimming costs. BNP Paribas SA, France’s largest bank, announced plans to reduce expenses and boost its dividend last week. Deutsche Bank AG, Germany’s biggest lender, said Jan. 31 it exceeded a goal for raising capital levels and eliminated more than 1,400 staff.

[Bloomberg]

ekathimerini.com , Wednesday February 20, 2013 (12:40)  
Greece needs private debt overhaul, Piraeus Bank CEO says
Cheap energy pulls down eurozone producer prices in July
Greece sells 1.14 bln euros of 6-month T-bills, yield eases
New committee formed to assess progress of deregulation in closed-shop professions
Reforms to dominate Greek talks in Paris, debt relief talks later, says source
Greece hopes to assuage concerns it is slipping up on reforms during talks with European and IMF inspectors in Paris this week, with debt relief talks unlikely to start until October, a seni...
Trial over 2013 murder of pawn merchant starts in Athens
The trial over the April 2013 murder of a 30-year-old man running a family-owned pawn shop in the suburb of Dafni began on Monday with the four defendants admitting to their role in the deat...
Inside News
SOCCER
Greece defender Papadopoulos fires parting shot at Michel
International defender Avraam Papadopoulos suddenly quit Olympiakos on Monday to join Turkish club Trabzonspor, and fired a parting shot at Olympiakos manager Michel putting the blame on the...
SOCCER
Unlikely pair on the Super League summit
Veria and Atromitos are sitting pretty at the top of the Super League after the second round of games thanks to their away wins that made them the only clubs to have six points, as champion ...
Inside Sports
COMMENTARY
Politicized archaeology
Let us suppose that archaeologists discover that the tomb uncovered in Amphipolis was not the resting place of Roxana or Nearchos, but of Alexander the Great. Let us assume, that is, that ar...
EDITORIAL
Moderating expectations
Politics is, to a great extent, all about managing expectations, and anyone who raises that bar too high or too fast is at serious risk of disappointing and losing the people’s favor. In a c...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greece needs private debt overhaul, Piraeus Bank CEO says
2. Cheap energy pulls down eurozone producer prices in July
3. Greece sells 1.14 bln euros of 6-month T-bills, yield eases
4. Reforms to dominate Greek talks in Paris, debt relief talks later, says source
5. Greece defender Papadopoulos fires parting shot at Michel
6. Unlikely pair on the Super League summit
more news
Today
This Week
1. Politicized archaeology
2. Rain and storms with hail expected in many parts of Greece
3. Moderating expectations
4. New committee formed to assess progress of deregulation in closed-shop professions
5. Trial over 2013 murder of pawn merchant starts in Athens
6. Reforms to dominate Greek talks in Paris, debt relief talks later, says source
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Attack on gay couple in Athens leaves one man needing surgery
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.