22 Sep 2009
"Now remember a few months ago it was all about, ooh, if there's too much regulation, it's going to kill creativity in the banking sector. Well, thank you very much for creativity, we don't need too much of that," says Christine Lagarde, the French Finance Minister, who with President Nicolas Sarkozy is spearheading reforms in the French banking sector, aimed at reducing the bonuses of bankers.
A BBC poll has found that 67% of French people support more regulatory oversight over the banking sector. This is linked to the French government taking a "bold stance" Global Pulse reports.
The French government proposes the following reforms:
- Banks that took bailout money would be banned from including stock options in their payment packages until 2010.
- Some bonuses would just have to be deferred.
- Employees that work in departments that lose money would see their bonuses reduced.
Neverthless, a lack of political will in the US and the UK present a challenge to the French/German alliance pressing for global banking sector reforms.