Britain says it won't support banker bonus cap

British finance minister says his country doesn't accept proposed cap on bankers' bonuses

Associated Press
Britain says it won't support banker bonus cap
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Spain's Economy Minister Luis de Guindos, left, speaks with Irish Finance Minister Michael Noonan during a meeting of eurogroup finance ministers in Brussels on Monday, March 4, 2013. The eurogroup finance ministers are set to discuss details of a bailout for cash-strapped Cyprus, further steps of assistance for Portugal and Ireland as well as the controversial issue of direct banking recapitalizations through Europe's permanent rescue fund. (AP Photo/Virginia Mayo)

BRUSSELS (AP) -- Britain's treasury chief says his country does not support the proposed European legislation on capping bankers' bonuses.

George Osborne said at a meeting of European Union finance ministers in Brussels on Tuesday that Britain, home to one of the world's largest financial industries, wants further negotiations.

Most European nations support the legislation, which would limit bonuses to one year's base salary and double that if a large majority of the bank's shareholders agreed. It could be passed by qualified majority, without Britain's consent.

German Finance Minister Wolfgang Schaeuble said "it would be better" to reach consensus.

He expressed hope that changes in technical details might yet convince Britain to support the measure, which is part of a wider package of financial laws requiring banks to strengthen their capital buffers.

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