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In a letter to the Financial Times, French Finance Minister Christine Lagarde and others said they will call for a strict compensation policy for banks to be put in place, at the G20 finance ministers' meeting that starts Friday in London.
The letter was signed by Finance Ministers of Sweden, the Netherlands, Luxembourg, France, Spain, Germany and Italy.
The European finance ministers said they will act to prevent some financial stakeholders from reverting to harmful practices.
The banks after taking the benefit of public money are taking advantage of the good first-quarter to pretend that the crisis was only a minor setback and that they can return to business as usual. Such practices are not only dangerous, but improper, cynical and unacceptable, ministers wrote.
"They constitute a provocation in face of rampant rising unemployment."
Risk related to compensation schemes should be strictly supervised, ministers said.
Accroding to these ministers, guaranteed bonuses for more than one year should be prohibited. Further, bonus payments should be spread out over a few years and paid bonuses should reflect the individuals and banks' true performances over time, the letter said.
Seeking to lay the foundations of a sustainable growth built on the principles of transparency and responsibility, ministers concluded the letter saying "The bonus culture must come to an end and it must end at the G20 meeting in Pittsburgh".
Finance Ministers and central bankers of the G20 are also expected to discuss their position regarding withdrawal of fiscal stimulus at its meeting this weekend.
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