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]