G-20 Cracks Down on Banks

The G-20 Finance Ministers spent the holiday weekend coming to agreement on the hotly debated topic of bankers’ bonuses. Instead of the formal cap on bonuses proposed by France and Germany, the officials drafted a proposal that rewards long-term success instead of short-term risk-taking, reports BBC News. This would also stop up-front cash bonuses, and they agreed more transparency was necessary. And while France and Germany wanted to talk “exit strategies” for their participation in the stimulus, Prime Minister Gordon Brown said such tactics would be a “serious mistake” that may cause a “downward lurch” in the economy. These talks are preparation for the G-20 summit held in Pittsburgh later this month.