Italian MEP Claudio Morganti Calls Again for Glass-Steagall at European Parliament April 16 Plenary
April 17, 2013 • 9:04AM

Speaking at the plenary session of the European Parliament today, Member of the European Parliament (MEP) Claudio Morganti, from Italy, welcomed the proposed cap on bankers' bonuses and alleged incentives for credit to small and medium-size enterprises (SMEs), but said that against the crisis of the banking system, the "simplest" solution would be "to go back to a clear separation between commercial and investment banks, on the model of the American Glass-Steagall Act, whose abolition has provoked a spiral of international financial crises."

The European Parliament voted for the proposed cap on bonuses (1:1 ratio between salary and bonus, 1:2 if voted by a majority of shareholders), for an increase of capital buffer for banks, and for a lowering of risk-classification of credit to small and medium-sized enterprises (SMEs), in the hope that this will re-start credit flows to the economy.

As reported by Agenparl, Morganti also said that he finds it "immoral that the main people responsible for the financial crises are rewarded with millions of euros. Just one year ago, Mr. Antonio Vigni, currently under investigation by prosecutors, left his job as General Director at the Monte dei Paschi di Siena with a bonus of EU5 million, after having bankrupted one of the largest European banks."