National Council wants to reduce bonuses for bank directors

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A month and a half after Credit Suisse’s swift bailout, the National Council is hitting its first pins when it comes to banking regulation. He advocates a total ban on bonuses for the highest management levels of systemically important banks. The decision was clear: with 101 to 70 and 22 abstentions, the National Council accepted the initiative of SP National Councilor Prisca Birrer-Heimo (64).

The center, which is almost unanimous in favor of the ban on bonuses, has helped the left succeed. Behind the many abstentions were the Green Liberals. SVP and FDP do not want to remove banker bonuses. Although SVP representatives themselves have put forward proposals targeting the high remuneration in the banking sector, the demands do not go beyond capping bonuses. A total ban on bonuses, even if only for the top bank, is obviously going too far for her.

Higher equity requirements

The National Council also wants to tighten the screw on the equity ratio. For large banks, this should now be at least 15 percent. Today it is about five percent.

At the extraordinary session in April, which marked the takeover of CS by UBS, Parliament welcomed the giving of audit assignments to the Federal Council. “Nume nid gschprängt” is the motto in federal Bern. First of all, you want to make an interpretation, before you then – if necessary – screw up the laws.

But now the National Council is giving steam to the Federal Council. The decisions are remarkable – but nothing has been decided yet. The progress will now go to the Council of States, which must also give the green light. The two SP advances have a much more difficult time there. It is very likely that the middle representatives in the Stöckli will vote differently from their colleagues in the large chamber.

Source:Blick