by Mathew Katz

The European Union is considering new rules that would fine banks for giving out bonuses to employees who take excessive risks. These are folks like Citibank's ex-CEO Charles Prince, who mired the bank in toxic loans, resigned, and still got a $12.5 million bonus.

If the rules are passed, they wouldn't go into effect until 2011. That's a bit too late to address the current financial crisis, but the proposal is definitely colored by it. Check out some of the recommendation's harsh wording:

A high-fixed component should reduce excessive risk-taking by removing perverse incentives for an individual to increase his or her total remuneration by boosting short-term financial results.

Translation: We've had it with insiders betting someone else's house to make themselves rich.