World Articles

Good news on employment front in the United States. New entries in unemployment at its lowest since September 2008, to 452,000 in the week ended on December 18. This figure comes after two weeks of up and confirms the downward trend observed since late March in the United States.

Analysts do not expect a decline of this magnitude and had forecast about 470,000 new registrations. The total number of unemployed receiving benefits rose to 5.07 million, a decrease of 127,000 persons over the previous week.

The Department of Labor, which published the statistics, held relative to this development, stating that "this week in particular is extremely difficult to adjust for seasonal variations, because the raw numbers can be very different depending on the configuration calendar year. Clearly, the actual unemployment has probably not declined much.

Banks in the City must follow the rules on bonuses strictest in the world, according to Sir David Walker, author of an official report presented Thursday to the government. The former president of Morgan Stanley has created a nice surprise in the City by requiring financial institutions to disclose how many employees earn more than one million pounds (1.1 million euros). He also wants to go further than the "code of compensation" which is being implemented by the supervisory authority of financial services (FSA) recommending to display up to five years to pay bonuses to bankers, with the possibility for banks to recover some money in case of trouble. These principles are closely following the agreement signed last September by the Heads of State and Government of the G20 summit in Pittsburgh.

The City thundered.Finance Minister Alistair Darling has promised, this Thursday, that "government would act quickly to implement reforms" proposed by Sir David Walker. For the proposed measures have a chance to be implemented before the next parliamentary elections should take place in early May 2010, will require that they be included at the last moment in the law reform of financial regulation which has just 'Just be submitted to Parliament. What will be difficult, but possible.

Risk of leakage of foreign talent

At the heart of the report, the transparency clause on salaries of more than 1 million books, which will be released in increments of 1 to 2.5 million, 2.5 to 5 million and more than 5 million, including trying to give shareholders more information on wage policies in force in the banks.According to estimates by Sir David Walker, over 1 000 employees of the City already affecting more than one million pounds per year, counting salary and variable bonuses. Even if we can not make public the names of best paid traders as is envisaged in the United States, this clause will cause howls of anger in the community bankers, was also accused the author of the report Thursday, the Financial Times.

Financial crisis or not, the very secret little world of the City that does not put his nose in his business bonus. Bankers fear that strict new rules do not flee the best foreign talent."It is essential that other countries adopt the same rules and at the same time, has warned Angela Knight, chair of the British Bankers Association (BBA).

Besides compensation, the Walker Report, released Thursday, reflects the recommendations already made this summer in a draft to strengthen the boards of banks. The members of CA should thus be better equipped to control both the financial risks and wage policies.

The Walker Report (pdf and English)

"The banks remain fragile in Europe

The scandals have done nothing there. The Wall Street Journal, the remuneration received by the U.S. capital in 23 large U.S. financial institutions should exceed 140 billion dollars (about 94 billion euros) in 2009, despite the various cases around the salaries of operators market contributed to the establishment bankrupt or distressed.

So, the year 2009 could, in terms of financial compensation, be better than 2007 a record year in the field with 130 billion dollars paid. Employees of these institutions should receive $ 2,000 more than in 2007, with an average of 143,400 dollars per head. This constitutes an increase of 20% compared to 2008, when market participants were affected in all and all for $ 117 billion.

The publication of this study comes as the Obama administration must publish its recommendations this week on salaries in effect in seven companies receiving federal assistance, including Bank of America and Citigroup.

Several scandals have erupted since the financial crisis around the salaries of traders, particularly in establishments which had been the subject of aid from the state. The issue had caused such great controversy between American and European cap salaries of traders. The G20 had compromised by adopting the principle of staggered payments over a longer period, and the establishment of a penalty.

ALSO READ:

"The banks are subject to higher requirements

"G20: Europe scores points on financial regulation