EU

  • 26 Sep 2014 at 2:03 PM
  • Banks

Bonus Watch ’14: Lies, Damn Lies and Semantics

The European Union still doesn’t care what you call them. They’re all bonuses to them. Unless, of course, they fall into the narrowly-defined category of “allowances.” Good luck with that. Read more »

  • 08 Sep 2014 at 3:17 PM
  • Banks

Bonus Allowance Watch ‘14: Europe

EU Internal Markets Commissioner Michel Barnier doesn’t care what you call them, and he doesn’t care if they’re technically legal. All he cares about is when you add up all the bonuses and allowances and gratuities and tips adult-entertainment vouchers, they stay below the line he has in mid. Read more »

HSBC has given 15 of its top bankers “fixed pay allowance arrangements” worth £7.1m under a controversial new pay scheme designed to dodge tough new European Union rules on bankers’ bonuses…The awards are part of big banks’ plans to increase the basic pay of executives to sidestep tough new EU rules designed to clamp down on excessive bonuses. Banks have turned to awarding fixed pay allowances after the EU ruled to cap bonuses to 200% of salary, even if shareholders wanted to approve higher payments. The new payments are counted as fixed pay, which means banks can, with shareholder approval, pay bonuses of 200% of bankers’ collective basic pay and fixed pay allowances. The fresh money, which is not subject to clawbacks designed to retrospectively recoup bonuses in the event of any wrongdoing emerging in the future, covers the first half of the year – and bankers can look forward to further payments every three months. A fifth of the shares will vest in March 2015, with the rest locked up until 2020. [Guardian]

As long as threats are being issued over the matter, Citigroup would like to remind the U.K. that without the EU, it is just a small island country that is no easier to get to from New York than Frankfurt. Read more »

Unlike mortgage-backed securities, supranational political entities simply cannot have this many sub-prime components and expect to keep its triple-A rating, according to S&P’s flawless debt-rating system. Read more »

  • 13 Dec 2013 at 3:14 PM

Bonus Watch ’13: No Bonus Caps For You!

If you are a banker in Europe who makes less than 1 million euros and also aren’t in a position to burn the place down. Read more »

  • 29 Jul 2013 at 3:39 PM
  • Banks

Bonus Watch ’14 And Beyond: Europe

The EU is amending its hilariously easy-to-skirt bonus restrictions, to punish you, should your firm allow its Tier 1 capital ratios fall below an arbitrary (and possibly variable) level. Read more »

  • 11 Jul 2013 at 3:45 PM
  • Banks

Germany Says ‘Nein’ To EU Bank Shutdown Plan

In case you had any doubt as to who actually runs the European Union, it’s her. Read more »