G20 punts on bank bonuses

LONDON, Sept. 5 (UPI) -- Finance ministers from the Group of 20, meeting in London, failed to agree Saturday on compensating bankers to reward them for long-term performance.

The group, after discussing regulation of financial bonuses, decided to ask the Financial Stability Board to draw up a plan for presentation to the G20 summit this month in Pittsburgh, The New York Times reported.

The German and French ministers argued for restrictions on bonuses based on short-term gains. But U.S. Treasury Secretary Timothy Geithner pushed instead for requiring banks to have more capital.

"We argued very hard and very convincingly," said Christine Lagarde, the French finance minister. "We've agreed that the (Financial Stability Board) will come back to Pittsburgh with proposals on remuneration. Bonuses are quite outrageous, and we can't let that continue."

The ministers did agree on the need for more stimulus. Geithner said governments typically respond too slowly to economic crises and then "put the brakes on too early."

Most of the ministers in the world's 20 biggest economies believe recovery is under way. But they remain concerned about the ongoing shedding of jobs.