Bankers’ lobby steps up to save sky-high bonuses

City big guns are lobbying hard in Europe to thwart moves aimed at curbing annual bonuses.

 

The Association for Financial Markets in Europe (AFME), one of the City’s most powerful financial lobby groups, is against capping bankers’ bonuses. It has written to members of  the European Parliament to vote against rules that would drastically limit them.

It is perhaps hardly surprising that the City wants to block these restrictions, but a glimpse at the level of lobbying occurring was provided by a story reported in the Sunday Telegraph. According to the newspaper the industry group wrote to Members of the European Parliament this weekend. The letter, seen by the Sunday Telegraph, was signed by Simon Lewis, chief executive of AFME. Lewis warns that amending the CRD to include a cap on bankers bonuses could result in banks simply raising basic salaries.

The AFME is made up of over 190 members including all pan-EU and global banks, key regional banks, brokers, law firms, investors and other financial market participants.

City AM has previously reported on AFME consulting with lawyers Clifford Chance over suing the EU if Brussels imposed such restrictions.

The Bureau has been looking into the issues around lobbying in the financial sector. Stay tuned for more.