Derek Vaughan MEP

Working hard for Wales in Europe

Welsh Euro MP welcomes tightening of EU bank rules

A leading Welsh politician today backed new EU rules for banks and investment firms that seek to protect the financial sector from future crises and improve transparency for consumers.

Speaking from the European Parliament in Strasbourg after voting to support the changes, Welsh Labour’s DEREK VAUGHAN MEP said that the move will pave the way for much-needed comprehensive reform of the banking system.

"The banking crisis a few years ago showed the need to make banks more accountable to their customers and wider public, serving the needs of ordinary people rather than becoming a reckless cash-cow for overpaid executives.

Under the new regulations, bankers’ bonuses will be limited to 1:1 salary to bonus ratio putting an end to the high risk culture in which bankers gamble with people’s lives and livelihoods, leading to taxpayer funded bailouts and bank collapses.

By January 2015, all banks will have to disclose key information about profit and loss before tax, subsidiaries, tax on profit or loss, turnover, number of employees and public subsidies received.

The changes, alongside requirements for banks to retain enough capital to withstand any shocks will go some way to learning the lessons from the past few years when bankers have played hard and fast at the expense of their customers.

Shamefully, UKIP and Tory MEPs have sought to resist any measures to deal with reform of bankers bonuses, once again acting like poodles and choosing to stand up for those who have continually put our economic future at risk whilst lining their pockets at the same time."

Further information on the approved changes can be found here: http://www.europarl.europa.eu/news/en/headlines/content/20130405FCS07019/3/html/Parliament-approves-reform-package-to-strengthen-EU-banks

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