Posts Tagged ‘trading for  dummies investors’

How The New Banking Bonus Rules Affect Trading For Dummies

Thursday, July 8th, 2010

Europe takes the lead and impose a ceiling on bonuses of bankers.
Two years after the outbreak of the financial crisis in the United States with the bankruptcy of Lehman Brothers, bonuses brokers and executives of European banks will be better supported.
Starting next year, bonuses will be limited to 30% of fixed salary, while bonuses for great value may not exceed 20%.
Much of the bonus will not be paid immediately.
The money will be frozen for a period of at least three years to allow the employer to recover some if the investment would not work as expected.
At least 50% of a total bonus will be paid as contingent capital, which can be recalled in case of banking difficulties, so that taxpayers do not end up in the front line when a bank gets into difficulties.  This  is  good  news  for  trading for  dummies investors as  it means  that the banking sector may  show  a  strong  rebound  in the next  two  years.