For the first time in history, the European Union has agreed to cap bankers' bonuses. The accord is part of new stricter rules on banking in the wake of the financial crisis. Bonuses will be limited to a year's salary
Regulators have put forward a new set of rules to ensure bank creditors instead of taxpayers foot the bills for banks deemed "too big to fail." The proposal was crafted to prevent a repeat of the 2008 financial crisis.
The EU Commission has urged the bloc's banks to comply with new rules on staff bonuses or face punishment. A probe by its EBA banking watchdog has found out that many banks dodge the rules with unlawful handouts.
Britain is suing Brussels over rules capping bonuses for bankers -- saying that the new regulations make the banking sector less competitive.
German Finance Minister Wolfgang Schäuble has warned against the idea of Britain leaving the EU, claiming it would be "catastrophic." The comments came after the UK failed to stop an EU agreement on new banking rules.
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