Germany to cap pay at state-aided banks: source

26th October 2010, Comments 0 comments

The German government has decided that no one at a bank that received public funds during the financial crisis should earn more than 500,000 euros (694,000 dollars) per year, a source close to the ruling coalition said Tuesday.

The measure is expected to be approved by the lower house of parliament this week and take effect early next year, the business daily Handelsblatt reported separately.

It follows a similar cap on salaries of executives at banks that received public aid during the global crisis and the discovery that others at banks like Commerzbank, Hypo Real Estate or WestLB are paid more than a half million euros annually.

Those banks said such salaries were paid mainly to specialists in their investment banking divisions.

© 2010 AFP

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