EU law proposes sanctions for risky bank bonuses - Yahoo! News UK

EU-Digest On Monday a draft law was released by the European Commission which will tighten EU rules on bank capital and would require banks to improve their disclosure of holdings in securitized products. The rules, which are expected to also include other anticipated reforms, like a cap on leverage and a variety of capital and liquidity barriers, will make it harder for banks to earn high returns on their assets. Once approved, the new laws are expected to come into force in 2011 as part of an overall effort to restore confidence in the ailing financial sector. Given the strength of the financial lobby groups in Bruxelles and member state countries, a hard fight can be expected from the financial sector as these new laws are being debated.