Merkel, Sarkozy Urge G-20 to Limit Bonuses, Bank Size
Posted by ecoshift on September 1, 2009
Merkel, Sarkozy Urge G-20 to Limit Bonuses, Bank Size (Update1) – Bloomberg.com
By Rainer Buergin and Helene Fouquet
Sept. 1 (Bloomberg) — German Chancellor Angela Merkel and French President Nicolas Sarkozy will press fellow Group of 20 leaders to limit the size of banks, regulate the bonuses they pay out and tighten capital requirements.
Merkel and Sarkozy, at a news conference in Berlin late yesterday, said they will outline the joint French-German proposals in a letter to the European Union to help formulate a unified EU position for the G-20 summit in Pittsburgh on Sept. 24-25.
“No bank must grow to a size that puts it in a position in which it can blackmail governments,” Merkel said. “We need agreed international rules on how to ensure this.”
….“We mustn’t waste this opportunity” in Pittsburgh, Merkel said. “To the surprise of many, we’re noting in several financial centers of the world that the banks that got back on their feet again are behaving just like they did before the financial crisis. This mustn’t repeat itself.”