UK chancellor seeks EU bonus consensus

25 November 2010

British chancellor George Osborne is set to approach fellow European finance ministers to ask them to support a common framework for the disclosure of details relating to bankers' bonuses.

According to the Financial Times, the Conservative politician has come under pressure from City lobbyists opposed to greater transparency and is expected to drop the reforms in favour of EU regulations proposed by Brussels.

"The chancellor will be writing to his EU counterparts to suggest new EU-wide transparency rules on bankers' bonuses in line with Sir [David Walker's] recommendation," a Treasury spokesman told the news provider.

In his report last year, Sir David proposed publicising which traders at nationalised financial institutions - such as the Royal Bank of Scotland - take home performance-related payouts of above £1 million ($1.57 million).

The report comes days after Liberal Democrat business minister Vince Cable hit out at the banking sector's "outrageous and irresponsible" remuneration packages, which he pointed to as being partly responsible for the 2008 financial crisis.

By Claire Archer

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