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EU seeks deal on fixed-salary cap for bankers' bonuses

Published on Feb 19, 2013 8:15 AM

BRUSSELS (REUTERS) - Bankers' bonuses could be pegged at no more than their annual salaries if European Union lawmakers and member states reach agreement in key talks on Tuesday.

Representatives from European Union states and the European Parliament are meeting to thrash out a deal on an EU law to implement a global bank capital accord known as Basel III, the world's regulatory response to the 2007-09 financial crisis.

Without the law, Basel III - which was due to be phased in from January - cannot be implemented.

The negotiations have dragged on because the European Parliament, in response to anger from investors and the public over the role played by banks in the financial crisis, also wants to peg bonuses to no more than annual fixed pay, a provision not in the Basel accord.

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