Will Gordon Brown now go ahead with his own financial crisis responsibility fee?
With news that the US government is pushing through a financial crisis responsibility fee which could cost some of the largest US banks in the region of $2 billion a year, there is speculation that the UK government could follow suit and announce its own punitive measures. While the situation in the US is far worse than that in the UK, with the US authorities estimated to have lost $117 billion from the financial bailout, there is no doubt that UK taxpayers have suffered.
Whether the introduction of a similar penalty charge in the UK would be a step too far, bearing in mind the 50% banking bonus tax, remains to be seen but Gordon Brown is unlikely to let the US situation pass by. Again, as we approach the UK election all political parties are looking to curry favour with UK voters and what better way than continuing to batter the UK banking arena?
So far there has been no official response from the UK government although it is known that UK operations with exposure to the US will be expected to contribute to the financial crisis responsibility fee program. Times are tough in the worldwide banking arena and they are about to get a whole lot tougher!
Share this..
Related stories
Cost cutting supermarkets pile pressure on food producers
24/11/2014 Supermarkets such as Tesco, Asda and Morrison’s are forcing some food production companies into insolvency, according to accountancy company Moore Stephens. The number of food production companies who entered insolvency increased by 28% in the 12 months leading to September, despite an improving UK economic outlook. It is believed that the reason for this unexpected pressure...
Read MoreWhat is a Tobin tax?
After today's comments by the chairman of the FSA (Financial Services Authority) Lord Turner, many people are now wondering exactly what a Tobin tax is. Named after the economist James Tobin this particular style of tax was first discussed in 1971 in relation to implementing a tax charge on all cross-border currency transactions in order to reduce short-term speculation by increasing short-term co...
Read MoreWill Cadbury succumb to Kraft Foods?
The ongoing £10 billion battle for control of Cadburys could well be a one-sided affair with little sign as yet of a white knight bidder entering the fray. If no other bidders counter the move by Kraft Foods then we are likely to see a stand-off situation between Cadburys and its US predator which will ultimately come down to price.
Even though it is not certain that Cadburys will...
Are UK taxpayers getting a raw deal from the government?
With rumours that the UK government is set to spend more taxpayers money on a potential bailout for the car industry as well as rumours of further funding issues for the UK banks, there are many who are now starting to question the use of taxpayer funding. So far, despite a multibillion pound rescue package for the UK financial sector, the consumer has yet to see any credible return or improvement...
Read MoreNegative equity spreads across the UK
Negative equity, where the value of outstanding loans is more than the value of the property on which it is based, has spread across the UK like wildfire. A report by ratings agency Fitch has confirmed that one in ten UK homeowners are currently experiencing negative equity although the company suggests this could rise to an alarming one in three if the property sector takes a further lurch downwa...
Read More