Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

SOUTH AFRICA'S RAMAPHOSA HAILS 'NEW DAWN' IN STATE OF THE NATION ADDRESS

Read more

MEDIAWATCH

A controversial Chinese New Year

Read more

THE WORLD THIS WEEK

New Beginning? Ramaphosa Replaces Zuma in South Africa

Read more

FRANCE IN FOCUS

On the green slopes: An eco-friendly revolution in French ski resorts?

Read more

YOU ARE HERE

The Élysée palace, France's presidential powerhouse

Read more

DOWN TO EARTH

Is the aviation industry free-riding on climate change efforts?

Read more

FOCUS

The revival of the Ethiopia-Djibouti railway line

Read more

REPORTERS

Video: Girls in Malawi victims of 'sexual cleansing' ritual

Read more

REVISITED

Video: How the 2014 Winter Olympics transformed Sochi

Read more

Business

IMF chief "appalled" by the return of large banking bonuses

Text by NEWS WIRES

Latest update : 2009-07-29

Dominique Strauss-Kahn, Managing Director of the International Monetary Fund, told FRANCE 24 that he was "appalled" to see large bonus provisions being set aside at banks, which he warned could lead to new "dramas" in the financial sector.

AFP - The return of the big bonus culture for top banking executives will trigger new "dramas" in the financial sector if tougher regulation is not applied, IMF chief Dominique Strauss-Kahn said Wednesday.
  
"I am appalled at what I see," the Fund's managing director told France 24 television in reference to multi-billion-dollar bonus provisions set aside at the likes of Wall Street's Goldman Sachs and top London firms.
  
"The fact that... one of the causes of (the crisis) -- the lure of profit, this easy money, the taking of huge risks to make money -- is returning so quickly... that appalls me," Strauss-Kahn said.
  
He also expressed his sadness at a failure by leaders to "put in place regulations preventing this, stopping a small group of men and women drawn to profit from dragging the entire world economy into catastrophe."
  
While Strauss-Kahn said it was "not the job of the IMF" to press for such regulation, he said the bonus culture "is something that has created dramas (for the financial sector) and which will create more again if we don't put the brakes on."
  
Goldman Sachs and JP Morgan have reported record profits for the first half of the year, while Europe's biggest bank, Santander, on Wednesday reported the second highest quarterly profit in its history.

Date created : 2009-07-29

COMMENT(S)