EU to call for sanctions on excessive bank pay

[September 16, 2009]  BRUSSELS (AP) -- European Union leaders will call on the world's leading economies to threaten sanctions against banks that pay excessive bonuses to executives and traders.

In a draft statement likely to be agreed at a Thursday summit, the leaders say the G-20 meeting in Pittsburgh on Sept. 24-25 should set binding rules for how banks reward employees. They want to curb a bonus culture that encouraged banks to build up exposure to enormous losses.

EU governments say they want to make sure that bankers' pay is linked to the company's performance and can be clawed back if the business does badly.

[Associated Press]

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