Foreign bank branches operating in Britain have agreed to measures to curb bankers' bonuses agreed at last month's Group of 20 summit in Pittsburgh, they announced Wednesday alongside the government here. It follows recent moves by leading British banks to sign up to the measures and work with British regulator the Financial Services Authority (FSA) in cracking down on excessive bankers' bonuses.
Curbing bonuses is part of tougher regulation to tackle systemic weaknesses that led to the global financial crisis. Many blame high bonuses for excessive risk-taking that aggravated the worst economic downturn since the 1930s.
"The UK subsidiaries and branches of leading overseas banks have agreed to support the implementation of reforms to bank pay agreed by the G20 in Pittsburgh," Britain's Financial Services Secretary Paul Myners said. Bank of America-Merrill Lynch, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan, Morgan Stanley, Nomura, Societe Generale and UBS all agreed to the bonus crackdown, the said in a statement.
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