Anthony Sages Responds to New Global Banking Rules

New York, New York (PRWEB) July 09, 2012

Bloomberg recently released a new article detailing the efforts of the Financial Stability Board to establish banker pay curbs to regulate bonus payments among banks across the several countries. The response has been varied, and the article only points to a few countries for making considerable efforts to abide by these new rules. Other countries are not as willing to cut bonus pay for several reasons. Anthony Sages, a financial expert who has worked with several top companies across the globe, understands that it is very difficult to communicate one idea across different nations, cultures and languages, but hopes that each country will see the necessity imbedded in these initiatives.

In a report developed for a G-20 meeting, the FSB explained, Member jurisdictions have made different choices regarding the institutions and employees that are covered. Many countries and companies are causing a wide variation in what bank employees will be affected by these curbs. For example, Barclay PCL CEO, Robert Diamond agreed to surrender 11 percent of his earnings only until bank profits increase. Going in a different direction, Australian banks are taking a much more aggressive approach. The article states that the country applies curbs to any employee whose actions might affect the financial soundness of the institution and whose pay is significantly performance-linked.

Anthony Sages has worked in global finance and notes, Even on smaller matters it is very difficult to get separate countries to agree on policy. He comments on the FSB operation, The Financial Stability Board does have every countrys best interest in mind, however there may be too much freedom in the flexibility of how banks and nations go about responding to the established curbs. Sages fears that continued disarray could escalate to further problems regarding the policys implementation.

Other officials have expressed additional concerns regarding these new rules by stating fear that banks will lose key personnel as a result. Spanish regulators have even reported salary boosts as a way to make up for the cuts set forth by bonus curbs. Regardless, the FSB is still trying to find a collective understanding on the matter. However, Richard Reid, research director for the International Centre for Financial Regulation in London estimates It is unlikely that we will reach a globally united front on this issue. Not all countries share the same enthusiasm for such curbs, indeed some may see this as an opportunity to attract top talent.

Whatever the initial effects for banks turn out to be, Anthony Sages comments, It is important for banks to realize that these plans do hurt and may cause initial loss on behalf of the institution. However, it is also essential for those officials to note that these moves are meant to establish a more secure future in finances for everyone.

ABOUT:

Anthony Sages is a financial expert who has provided high-level advice to major companies who work in global finance. He has worked for international agencies and has a solid comprehension of the global scheme and relations behind policy-making and financial solutions. In addition to his 25 years of financial expertise, Anthony Sages has remained a continued supported of nonprofit groups and volunteer organizations including The United Way, ASPA, the Leadership Institute and the Financial Policy Council.







Tags: , , , , ,

Comments are closed.

CIGI Experts Outline Prescriptions for Cannes Summit and Beyond in Special Report on G20 Issues

Waterloo, Ont. (PRWEB) October 20, 2011 With a possible euro zone collapse and Greek insolvency likely to dominate the upcoming [...]

Pathways Home Health and Hospice Satu Johal Receives CFO of Year of the Year Award; Silicon Valley Business Journal Honoree

Sunnyvale, California (PRWEB) December 02, 2011 Satu Johal, CFO at Pathways Home Health & Hospice, received the Silicon Valley Business [...]

Latest Financial Regulation News

Working Together Towards Better Financial Regulation and Stability in Asia Image by Asian Development Bank Tellers attend to clients in [...]

European financial regulation – 4 questions to Olivier Garnier (Societe Generale)

Olivier Garnier, Chief economist at Societe Generale Group, expresses his view on European financial regulation and its reform. Video interview [...]

AMS Health Care Mortgage Corporation Provides Debt Service Savings to Hospitals Utilizing FHA 242 Mortgage Insurance Program

Jacksonville, FL (PRWEB) August 30, 2013 An oft-overlook and relatively unknown federal program for hospitals seeking capital for needed and [...]

Vermont’s Captive Insurance Industry Off to Best Start Since 2005

Montpelier, VT (PRWEB) April 16, 2012 First quarter licensure of new captive insurance companies is off to a strong start [...]