The German bank bailout law goes to parliament tomorow. Among the more difficult provisions for the banks to swallow are requirements that they limit executive compensation to EUR 500,000 per year while limiting severance packages to avoid the golden parachutes of yore. (Mine was more like a yarmulke).
When the packages become too onerous on the banks, the fear is that they will avoid taking government money and risk worse outcomes as a result. It will be interesting to see how the bill fairs.
