Saturday November 1, 2014 Search
Weather | Athens
18o C
13o 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)  
Disposable income of households fell 10.3 pct in one year
Banks unhappy with bad loans bill
State debtor numbers grew in September
Reform plan among conditions
Ministry swap halts talk of reshuffle as reforms eyed
Prime Minister Antonis Samaras on Friday appointed Nikos Dendias as defense minister, replacing outgoing Dimitris Avramopoulos, who assumes the European Commission’s immigration portfolio ne...
Turkish-Greek cooperation in Aegean helps stem flow of migrants
Closer cooperation between Greek and Turkish coast guard authorities has led to 11,000 undocumented migrants being prevented from entering Greek borders and returned to the neighboring count...
Inside News
TRACK & FIELD
An Authentic presentation of the Marathon race
As Athens gears up for its Marathon on Sunday, November 9, a book published in English by Greek journalist Yiannis Mamouzelos explains why the race on the course from Marathonas to central A...
BASKETBALL
Spanoulis played Zeus for Olympiakos against Neptunas
Captain Vassilis Spanoulis helped Olympiakos narrowly avoid an upset on Friday as it defeated Euroleague debutant Neptunas Klaipeda 85-81 in overtime in Lithuania to preserve its perfect sta...
Inside Sports
COMMENTARY
Checks and balances
The most interesting thing to emerge from a recent meeting of the Association of Judges and Public Prosecutors – at least as far as what made it into the press was concerned – was a statemen...
EDITORIAL
Opening hours on the agenda
An earnest discussion has finally started over whether Greek retail stores should be allowed to open every Sunday of the year instead of the current seven that have been assigned as part of ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. An Authentic presentation of the Marathon race
2. Spanoulis played Zeus for Olympiakos against Neptunas
3. Disposable income of households fell 10.3 pct in one year
4. Banks unhappy with bad loans bill
5. State debtor numbers grew in September
6. Reform plan among conditions
more news
Today
This Week
1. Checks and balances
2. Opening hours on the agenda
3. Archaeologists find underground vault at Amphipolis tomb
4. Man shot dead, woman injured in Vathis square attack
5. Greek retail sales rise for third month in a row
6. Cyprus’s Georgiades bets on economy for Irish-style bailout exit
Today
This Week
1. Austria’s creative bookkeeping beats Greece on secret debts
2. End of reason, end of humanity
3. Clean bill of health for Greek banks from stress tests
4. Samaras pledges action after flash floods in Athens
5. Eurobank, National Bank restructurings eliminate capital gap
6. Athens flood damage assessed, compensation payments to begin
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.