France set to ban bank bonuses

[Legal Beagles]

The French government will issue a decree banning bonuses for executives of banks that have received government aid, says news agency AFP.

More...

[enaid]

Re: France set to ban bank bonuses

BRAVO FRANCE and I don't often say that


France set to ban bank bonuses


President Sarkozy is responding to public anger over bank bonuses

The French government is to issue a decree banning bonuses for executives of banks that have received government aid, France's AFP news agency says.
The agency quoted presidential official Claude Gueant as saying the decree would be adopted next week.
Bonuses to executives of troubled banks have caused anger across the world.
US lawmakers have voted for a 90% tax on big bonuses to employees of banks that have taken government, and therefore taxpayer, funds.
Public anger
A number of banks in Europe and the US that have lost billions of dollars on bad loans during the credit crunch have been bailed out by government funds.
Some of these banks have subsequently paid out big bonuses to top executives, arguing that they could not renege on legally binding agreements.
Such arguments have done nothing to assuage public anger that taxpayer money is being used to reward the very people that many argue helped bring about the financial crisis in first place.
In the US, there has been outrage that insurer AIG paid out $160m (£110m) in bonuses after taking $170bn dollars in aid from the government.
President Barack Obama expressed his anger and lawmakers voted to claw back 90% of the bonuses through tax.
But no major economy has gone so far as to impose an outright ban on bonuses.