Is Barack Obama having second thoughts about his banking levy?
In his State of the Union speech Barack Obama has backtracked slightly on his recent banking levy revelation amid signs that the US government is becoming acutely aware that it may have gone too far. This move by the US government has prompted a recovery in worldwide stock markets with the banking sector bouncing after a difficult few days. So what does this mean for the future?
In a similar scenario to the UK, it looks as though Pres Obama has used the public's disdain for the banking sector to curry favour and attempt to rebuild his standing with the electorate. However, now that the headlines have been written and his hardline approach has been welcomed by governments and regulators around the world it appears his work has been done and he is happy to soften his approach.
How this will impact upon the UK banking sector, and any plans which Gordon Brown may have, remains to be seen but yet again it shows the power of the worldwide financial sector with the "tail appearing to wag the dog". As we await the fine print of the actual banking levy in the US it will be interesting to see how far the president is willing to go.
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