President Obama lends weight to G20 financial strategy
As we approach the next G20 summit, US president Obama has today vowed to join forces with fellow G20 leaders to "close the gaps in finance regulations" and also hit the excessive bonuses which have been paid to many in the financial industry. While European regulators struggle to control the payment of excessive remuneration packages in the financial industry, the US government has been far more successful by tying down banking companies to legally binding agreements which dictate various levels of remuneration.
It is hoped that some of the power which the US authorities have shown over the last few months will rub off on the G20 and European regulators and allow them to rein in the power of European and worldwide banking institutions. This is an issue which has now been ongoing for over 12 months and one which appears no closer to a successful resolution which would see banking bonuses and banking remuneration linked directly to profitability and risk.
Whether the G20 will give us something new to consider and bring the banks on board remains to be seen because historically these have been nothing but sounding boards for worldwide leaders with very little in the way of substance behind them.
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