by Calculated Risk on 9/06/2009 08:00:00 AM

From the WSJ: G-20 Agree to Boost Banks' Capital Requirements, Set Rules on Bonuses

The agreement on bankers' pay calls for a large portion of bonuses to be clawed back if bank performance subsequently deteriorates. It also calls for the deferral of a share of bonuses. ... More detailed proposals will be worked on in coming weeks by the Financial Stability Board ... Officials want the new rules in place before bonuses are paid out at year-end.

And on capital requirements:

... the officials [agreed] that more needs to be done to boost banks' capital cushions "once recovery is assured." ...

In a victory for Mr. Geithner ... there was also agreement that the leverage of international banks – the ratio of their total equity to their total assets -- should be capped. ... Officials fear that if the capital is not raised, undercapitalized 'zombie banks' would be unable to lend and would block economic recovery.

Here is the Communiqué - UK, 5 September 2009 (PDF 13KB)

And Declaration on further steps to strengthen the financial system, 5 September 2009 (PDF 15.5KB)