News Summary: EU agrees to limit banker bonuses

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File - In this Sept. 7, 2010 file photo, members of Oxfam are dressed as bankers during a demonstration outside of a meeting of EU finance ministers at the EU Council building in Brussels. Top European Union officials late Wednesday, Feb. 27, 2013 struck an agreement on a package of financial laws that includes capping bankers\' bonus payments at a maximum of one year\'s base salary. The bonuses will only be allowed to reach twice the annual fixed salary if a large majority of a bank\'s shareholders agrees. (AP Photo/Virginia Mayo, File)

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PARTY OVER?: Top European Union officials have agreed to slap a strict limit on bankers' bonuses, which have been blamed for encouraging the risk-taking behavior that triggered the financial crisis.

CRACKDOWN: The move is part of a broad package of financial laws that includes requiring banks to hold more capital reserves in an effort to shield taxpayers from having to pay for more expensive bailouts.

BUT NOT TOO HARD: Bankers' bonuses will be limited at a maximum of one year's base salary and will only be allowed to reach twice the fixed pay if a large majority of a bank's shareholders agrees, the European Parliament's chief negotiator said.

 
 
 

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