Sarkozy Calls For International Cap On Banking Bonuses

Ahead of next month’s G20 summit, French President Sarkozy said today that he will push for limits on bonuses for bank traders, in the context of his overall international campaign for greater regulation of the global finance.

This came out after Sarkozy’s meeting with French bankers yesterday, where they made the commitment to adopt a system of performance related pay. Since last year global financial meltdown, Sarkozy has positioned himself, with the help of his German counterpart, as the champion of tougher global financial regulations.

Today, Sarkozy made the following statement:

France will lead an international initiative for the countries of the G20 to apply the rules of transparency, oversight and responsibility that are now in place on the Paris market. We will propose a strengthening of sanctions towards banks that do not play by the rules, and we will raise the issue of limiting the size of bonuses. I see no reason why the issue should be taboo in Pittsburgh. If one of our partners disagree with us, let him say so before the court of the public opinion. Governments having loaned billions to banks to see them through the credit crisis should not accept a return to business as usual, and a culture of unregulated pay-out.

France & Germany will present a united front on this issue in Pittsburgh, however they are likely to meet substantial resistance from Britain & the United States.