In the competition to see which side of the Atlantic will claim the title for the worst populist driven regulatory legislation, the chairman of the FSA is looking to make it a one horse race. Adair Turner is kicking around the idea of slapping a tax on banks to give to the world’s poor.
“If increased capital requirements are insufficient, I am happy to consider taxes on financial transactions… Such taxes have long been the dream of development economists and those who care about climate change — a nice sensible revenue source for funding global public goods.”
As taxes and regulations continue to bombard everything that moves in London, you’d think the prospect of yet another cash drain would send shivers up the spine of the UK authorities as the city’s competitiveness as a financial center comes under fire.
“It’s clear to me that the FSA has to be very, very wary of seeing the competitiveness of London as a major aim, and that’s not a popular thing to say because it has been defined as an aim,” Turner said.
With friends of a healthy banking sector like these, who needs enemies?
FSA Chairman Proposes Global Tax on Banks to Aid Poor [Bloomberg]
UK getting closer and closer to V for Vendetta-esque totalitarian, sterile, Big Brother state every day, sucks
Don’t you guys hate when the wife puts a lock on Animal Planet?
-DK
Excellent point – the banking sector in the UK is “healthy” because of the work of these highly-paid execs and their traders. We should reward them with even more lucrative salaries and bonuses to ensure the banks remain “healthy.”
@3 – your little red book is on its way.
@Anal_yst
I don’t think they’re closer, I think they’ve already been there, shacked up, raided the fridge and left a floater in the bowl.
What rational person would ever want to move to London at this point? I think Somaliland is looking more attractive by now.
@ 1; I beg to differ
Our government is too crap to ever manage an effective totalitarian state.
@Analy_yst #1, if it gets us closer to some sweet Natalie Portman shorn head and subsequent vulgar gangsta rapping, it’s a price I’m willing to pay.
Plus, I’ll just hole up in the Shadow Gallery eating cereal and watching TV while V does his thing.
@7 Did you say Natalie Portman? My pants just moved
@3, don’t be a dumb frack. It’s clear to anyone with a brain in his head that all the money that was paid to these rocket-scientists was of no use whatsoever. It did absolutely nothing to provide a healthy banking sector. In fact, they provided just the oppposite. The UK banking sector is a total and complete piece of crap and has, with the exception of Barclays, been nationalized to prevent banking failures.
Do you dispute that?
Lads, refer to today’s Opening Bell.
Turner is free to voice his opinion, but Treasury, not the FSA, sets policy.
Seriously, anyone with a Scottish heritage should be fucking banned from anything to do with Finance by birthright.
@11 – yes, I am an idiot.
-Adam Smith
I’m all for confiscating stolen money.
“In the competition to see which side of the Atlantic will claim the title for the worst populist driven regulatory legislation, the chairman of the FSA is looking to make it a one horse race.”
Great sentence Greg.
-College Kid
@11
I second @12
Karl Marx
socialist moron @9: nice job failing to pick up on the sarcasm of the socialist moron @3. I bet you suck at math too.
Makes sense – Pigovian taxes tend to be a good idea. The financial sector exists to help other sectors of the economy. It’s hard to argue that the UK is benefiting from such a large financial sector. The government is subsidizing the financial sector heavily through pushing down the short-end of the yield curve, guaranteeing bank debt and capital injections. This is just as insane plans that pay car companies hundreds of millions to hire a few thousand workers. Great if you work for a car company/bank, sucks for everybody else. Would be cheaper for the UK government just to pay bankers in the future not to work.
And for any dweebs who think these thoughts are somehow “anti-free” market, I suggest you read Buffett’s letter last year for a discussion of why the financial sector is a tertiary sector of the economy.