Do not give the bankers their bonuses easily

FRANKFURT - The World Bank elite, gathered at the two-day meeting in Frankfurt, which continues today, vigorously defended the practice of assigning bonus, in response to requests to tighten regulations in the banking sector.

"We are against the absolute level of compensation restrictions," said co-chairman of the company, "Morgan Stanley" Valid Čamah, at the annual conference "Banks in Transition."

Executive Director of Deutsche Bank Josef Ackermann said the bank can not prevent them leading experts in their "slide through your fingers by tightly clenched fist," he said Reuters.

"The war for talent is in full swing," said Ackermann.

The feeling of vulnerability

This set in the German financial center of Frankfurt held before the anniversary of the collapse of U.S. investment bank, "Lehman Brothers", which is 15 September 2008. asked for protection from bankruptcy after a massive left most of the employees and customers. This caused a real panic among investors because it shows that even the leading institutions were not large enough that could not fail.

Banks feel threatened because the regulators, central banks and governments are taking measures in an effort to ensure that so far bezbrižne banks, which are not sputavane no restrictions, not again become the causes of the crisis in the economy.

Governors of central banks as this weekend the new framework proposed regulations that the banks were forced to put more profit in reserve in case hard times come again.

Individual Group of 20 finance ministers of the developed countries and economies in the rapid ascent (G20) also want to find ways to limit the bonus.

They are the last G20 meeting on Saturday in London agreed on the creation of a global body that would have the task to impose tighter control of wages and payments to financial institutions, in order to prevent a practice that, according to many experts, many contributed to the outbreak of the global credit crisis .

Why guaranteed?

The leaders of France, Germany and Great Britain, Nicolas Sarkozy, Angela Merkel and Gordon Brown, the eve of the meeting sent a joint letter in which they advocated for strict rules in the functioning of the banking sector and especially for the new policy in awarding bonuses prominent managers of the bank and other companies .

"Bonuses should not have been guaranteed, but they should win. What is needed is a series of strict, reasonable and practical rules to protect the interests of consumers, shareholders and the economy in a broader sense, provided they are in the message.

Brown, Sarkozy and Merkel also stressed that "citizens deeply shocked revive the practice is not for any praise and all this despite the fact that taxpayers' money used for the recovery of the financial sector, at the time of world crisis peaked.

Čamah: continue under the old

Although regulators and politicians generally agree that high-risk behavior extremely well-paid bankers was one of the main causes of the current financial crisis, those suffering struggle to agree about how to regulate or restrict bonuses.

"Superstar superstarske will receive bonuses. That will change," said one London banker, referring to višemilionske guaranteed bonuses that the bank still obasipaju leading managers to keep them or to them, took over from rivals.

Leading bankers in Frankfurt have advocated for careful and prudent approach to regulating this problem. Asked whether he felt pressure to change its business model of banks, co-president of Morgan Stanley "Čamah said:" Not really ... We will continue to do what we did well. "