French banks may adopt tighter rules on bonuses

Source: MarketWatch

Sarkozy keeps pushing for more regulation ahead of G20

Aug 24, 2009, 5:57 a.m. EST

By Aude Lagorce, MarketWatch

LONDON (MarketWatch) -- French President Nicolas Sarkozy is turning up the heat on the country's banks to adopt stricter rules on bonuses in a move that signals the end of the summer lull in French politics.

Sarkozy summoned the heads of French banks back to Paris for a meeting on Tuesday to discuss toughening the compensation rules in the financial industry.

As they prepare for the presidential session, the executives on Monday will meet Finance Minister Christine Lagarde, who has pledged to "eradicate" the bonus culture at French banks.

Although the banks have already adopted stricter rules on bonuses, the government is keen to further tighten them, particularly after negative public reaction to news that BNP Paribas /quotes/comstock/23r!pbnp (FR:BNP 58.15, -1.02, -1.73%) had set aside 1 billion euros to pay its best traders earlier this month.

Read more: http://www.marketwatch.com/story/french-banks-may-adopt-tougher-bonus-rules-2009-08-24

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you tell them, Nick !

Get the greed out of banking.