European Union officials are on the brink of agreeing to new rules on bank pay, and the results could crush the continent’s financial services giants, according to the Financial Times.
The move would see bonuses restricted to tight multiples of base salaries, and controls on how much cash can be paid up front in bonuses.
The most worrying reality for European banks: this won’t just impact their EU offices.
That means these restrictions will also apply to a banks offices abroad, and every worker there.
So, if you’re a big emerging markets player like HSBC or Standard Chartered, your bankers in Hong Kong and Singapore will get hit too.
And don’t think that American banks will jump in to take advantage just yet. Their offices in Europe will also be constrained by the rules.
So, if the rules turn out to be as strict as the Financial Times is suggesting, the City of London, La defence in Paris, and Frankfurt could be in for a lot of whining.