Correspondent, Brussels
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Mar 25, 2013

EU Commission says capital controls in Cyprus must be brief

BRUSSELS, March 25 (Reuters) – Cyprus may impose controls on
the movement of capital but only for a temporary period of time,
the European Commission said on Monday, hours after the island
sealed a deal to close its second-largest bank in return for
international aid.

“Any measures to restrict or limit freedom of movement may
only be enacted exceptionally and temporarily and that is what
has been requested by the Cypriot authorities,” Michel Barnier,
the European Commissioner responsible for the 27-member European
Union’s single market, told a news conference in Brussels.

Mar 21, 2013

EU lawmakers split over extending bonus cap to fund managers

BRUSSELS, March 21 (Reuters) – A European Parliament panel
called on Thursday for tighter control of fund managers’ pay,
but lawmakers were split over pushing for the kind of strict
bonus cap imposed on bankers.

Broad support in the parliament for wider controls comes
after lawmakers succeeded in capping banker bonuses at the level
of salary, a move to address public anger at a pay culture
politicians say prompted reckless risk taking and ultimately
triggered the financial crisis.

Mar 21, 2013

EU lawmakers back tighter control of fund manager pay

BRUSSELS, March 21 (Reuters) – A European Parliament panel
called on Thursday for tighter control of fund manager pay, but
a senior lawmaker who oversaw the vote indicated it was unlikely
to approve the kind of strict bonus cap imposed on banks.

While some members of the European Parliament responsible
for financial regulation believed it would be unfair to penalise
fund managers in the same way as bankers, a show of hands showed
strong enough support for some form of restrictions.

Mar 20, 2013

Bankers get one last bonus season before EU cap on payouts

BRUSSELS (Reuters) – Bankers in Europe will have one final bonus season before they are barred from awarding themselves payouts worth more than their salary, EU lawmakers agreed on Wednesday, paving the way for the first cap of its kind globally.

The cap is designed to address public anger at a bonus-driven culture many European politicians believe encouraged the risk-taking that led to the near-collapse of many of the region’s biggest banks.

Mar 20, 2013

Bank industry chief warns Cypriot banks must reopen in days

BRUSSELS (Reuters) – A solution must be found to reopen Cypriot banks within days before it is “too late”, one of Europe’s top bankers warned on Wednesday, saying he feared the island’s problems risked knocking confidence across the region.

“Everything needs to be solved very quickly. This is a matter of a very few days before it gets too late,” Christian Clausen, president of lobby group the European Banking Federation told Reuters in an interview.

Mar 20, 2013

EU lawmakers to close deal on banker bonus clampdown

BRUSSELS (Reuters) – European Union lawmakers are expected to agree on Wednesday to bar bankers in Europe from getting bonuses bigger than their salary, introducing the first cap of its kind globally.

One of the most ambitious reforms of the financial crisis, the cap is designed to address public anger at a bonus-driven culture many European politicians believe encouraged the risk-taking that pulled down banks and governments.

Mar 19, 2013

ECB wins watchdog role under cloud over Cyprus deposit levy

BRUSSELS (Reuters) – The European Union agreed on Tuesday to let the ECB police euro zone banks, taking its first step towards a banking union just as a levy imposed on Cypriot savers showed that the bloc will struggle to respond in a united way to bank problems.

The European Parliament and member states’ representatives sealed an accord reached late last year to give the European Central Bank (ECB) powers to supervise euro zone banks from the middle of next year.

Mar 19, 2013

European Union grants ECB bank watchdog role

BRUSSELS, March 19 (Reuters) – EU lawmakers agreed on
Tuesday to allow the ECB to police euro zone banks, but a levy
imposed on Cypriot savers shows they will struggle to unify
Europe’s response to bank problems.

The deal between the European Parliament and member states
finalises an accord agreed late last year to give the European
Central Bank powers to supervise euro zone banks from mid-2014,
a first step to a banking union across the 17-member bloc.

Mar 19, 2013

Fund managers should face bonus cap like bankers, says MEP

BRUSSELS (Reuters) – Fund managers’ bonuses must be capped in a similar way to bankers’ payouts, said an influential EU lawmaker who will play a central role in negotiating changes to the bloc’s rules.

Sven Giegold, a German member of the European Parliament, will seek to rally cross-party backing this week for tougher rules that would extend the clampdown on pay in finance, before a vote in the assembly on Thursday.

Mar 19, 2013

Cyprus overshadows banking union as ECB prepares for watchdog role

BRUSSELS (Reuters) – EU lawmakers are set to empower the ECB this week to supervise banks from mid-2014, but they will struggle to reinstate a vision of wider banking union, shaken by a levy imposed on Cypriot savers.

Last year’s agreement among countries to give the European Central Bank new powers to supervise euro zone banks from 2014 was initially applauded as a first step towards closer integration to help underpin the euro.

    • About John

      "I am a Reuters correspondent in Brussels, writing about the European Union. I moved here last year from Germany, where I had reported about the financial crisis, turning up numerous scoops and even winning a prestigious business reporting award. Beforehand, I worked with The Sunday Times in London."
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