The EU recognizes the need to stabilize the capital assets of it's banks.

THURSDAY 28 FEBRUARY 2013

...European Union (click here) chiefs have agreed a package of financial laws that includes capping bankers' bonuses at a maximum of one year's basic salary.

The bonuses will only be allowed to reach twice the annual fixed salary if a large majority of a bank's shareholders agrees, said Othmar Karas, the European Parliament's chief negotiator.

"This overhaul of EU banking rules will make sure that banks in the future have enough capital, both in terms of quality and quantity, to withstand shocks. This will ensure that taxpayers across Europe are protected into the future," said Ireland's finance minister Michael Noonan, who led the negotiations for 27 governments.

The bonus cap was part of a sweeping financial reform package introducing higher capital requirements for banks, the so-called Basel III rules.

The UK has been battling to stop the Basel III accord on capital requirements, fearing the impact on the City of London as the EU's leading financial capital....

I can't help but wonder if there are employees and/or former employees of banking institutions that could literally bail out them out without asking governments. It would seem to me the salaries of bank executives should not exceed a percentage of the revenues of the banks. There has to be a threshold whereby the salaries and bonuses are a drag on the solvency of the bank itself.