Awarding big bonuses to bankers could help sow the seeds of a future financial crisis, Jean-Claude Trichet, European Central Bank president, has warned. Trichet said financial institutions should be using higher profits to strengthen capital bases rather than paying out “unwarranted levels of compensation or bonuses”. A culture of excessive financial rewards encouraged “self-referential” and “self-serving” banking, he warned in a speech in London. His comments are the strongest criticism yet from the ECB of excessive bank remuneration.
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