Fallout: The Financial Crisis

Sarkozy pushes model to curb bonuses

Marketplace Staff Aug 26, 2009
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Fallout: The Financial Crisis

Sarkozy pushes model to curb bonuses

Marketplace Staff Aug 26, 2009
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TEXT OF STORY

Bill Radke: France’s President Nicolas Sarkozy is cracking down on banker bonuses. And now he’s urging the U.S. and other major nations to do the same. From the Europe Desk Stephen Beard has that.


Stephen Beard: President Sarkozy loves to blaze a trail. And he believes he’s doing that with his new curb on bonuses. French banks have agreed to defer the bulk of bonus payments for three years. Traders who lose money for their banks in the meantime will be stripped of their rewards.

Sarkozy says this could become the global model. He’ll call on the U.S. and other countries to follow suit at the G-20 summit in Pittsburgh next month. Edward Haddas is with financial website Breaking Views. He doesn’t believe the Sarkozy plan will be widely adopted. He says the campaign against bankers’ bonuses is running out of steam.

EDWARD HADDAS: If the banks say they need to pay high bonuses to keep the system running, then the politicians are inclined at this point to believe them.

Nevertheless, analysts say Sarkozy’s plan may strengthen President Obama’s resolve if he decides to curb executive pay at companies propped up by U.S. taxpayers.

In London this is Stephen Beard for Marketplace

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