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Renewed criticism over Swedish bank bonuses

TT/David Landes · 11 Jan 2010, 07:46

Published: 11 Jan 2010 07:46 GMT+01:00

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Financial markets minister Mats Odell was highly critical of the banks’ actions.

“Right in the middle of this financial crisis, bonuses have increased, not only as a percentage of income but also in the actual amount. It’s startling and worrisome," Odell told Sveriges Television (SVT).

As of January 1st, new, tougher rules regarding bank bonuses went into force. The rules stipulate that bonuses are to be based on earnings over a long period of time and paid out over a long period of time, rather than on short-term results.

In addition, a substantial drop in a bank’s profits can result in bonus payments being reduced or drawn in altogether.

FI plans to continue its ongoing review of the banks for the rest of year. After the summer, the agency will receive information from the banks about what they’ve done to abide by the new rules.

Odell lamented the fact that “Swedish banks have so far not lived up to the new requirements”.

“It’s now time for the banks to wake up and implement this. It shows that it’s important that we get these new rules in place,” he said.

But Swedbank spokesperson Thomas Backteman called Odell’s criticism misguided, explaining that bonuses paid in 2009 were based on 2008 results.

Story continues below…

“And I think that most Swedish banks had record profits in 2008,” he told SVT.

TT/David Landes (news@thelocal.se)

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Your comments about this article

12:50 January 11, 2010 by Nemesis
So much for Rheinfelts weasle words about the banks.

No one has learned any lessons from the crash. Nothing has changed.

It will be worse next time.
13:21 January 11, 2010 by Davey-jo
In the UK we had a problem with banker's bonuses. It was solved by giving them higher ones. They're still not happy but it was the best we could do ....It seems we have to keep these geniuses in position or the world will end.
15:57 January 11, 2010 by Thebinary1
The 'next time' you have indicated is the 3rd or 4th quarter of this year.
20:31 January 11, 2010 by davidmc
It is the same song-and-dance in the US. We keep throwing huge sums of money at CEOs and bank executives because doing so keeps the 'best people' in charge.
01:06 January 12, 2010 by Twiceshy
They're terrorists. "Give us the money or we kill the economy!"

If you ask me, any company which threatens the economy should go bankrupt, nationalized or both. Then it's either no bonuses or heavily controlled bonuses.

These guys were basically creating virtual profits for years and collecting bonuses, then they still get bonuses when their companies get in trouble.
06:53 January 12, 2010 by lingonberrie
The New World Order Bilderburg net is widespread and closely woven, and with the totally corrupt US Government colluding with the totally corrupt Wall Street and the banking oligarchy the poison has equally spread to Europe.

Everything is working as the power elite had intended.

Meanwhile, as the Depression in the United States deepens, more homes are foreclosed upon, more jobs are lost

and more people are left without anything.

Sweden should take care to watch that the same disease does not become rampant in Sweden.
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