On July 7, the European Parliament approved stricter rules on bankers’ bonuses and capital requirements.  The adopted resolutions call for, among other things: (i) capping upfront cash bonuses at 30% of the total bonus and at 20% for particularly large bonuses, (ii) deferring between 40% and 60% of any bonus for at least three years, and (iii) awarding at least 50% of the total bonus in non-cash instruments.  The more stringent capital requirements are expected to result in banks having to hold three to four times more capital against their trading risk than at present, and will tighten capital reserve requirements for resecuritizations. The EU Council of Ministers is set to formally approve the resolutions next week.  The rules on bonus provisions will take effect in January 2011 and the rules on capital requirements will take effect by the end of 2011. Release. Resolution.