Is an international banking tax really feasible?
Just prior to Gordon Brown's election call he has commented upon the potential for the introduction of an international banking tax which would be used as an insurance policy against any future economic disasters. The newspapers this week have highlighted the fact that while France and Germany seem keen on the international banking tax there are major reservations in the US.
Quite simply, without the assistance of the US authorities there is no way on earth that an international banking tax will go through and ultimately this ideal of Gordon Brown's will crash and burn. Attempting to load the European banking industry with yet more costs would reduce any competitive advantage over US counterparts and other financial giants around the world. As a consequence, it is very unlikely that the European Union will look to push ahead with a European-based international banking tax which would severely impact on business levels and competition in EU markets.
Yet again we are in the scenario whereby the UK, France and Germany (to name but a few) are keen to push ahead with financial changes although ultimately they will need to the backing of the US authorities to do so. Even though the European Union has grown in strength over the last few years it is nowhere near the US authorities with regards to its international presence but there has certainly been improvement.
Share this..
Related stories
Yvette Cooper favourite to be Shadow Chancellor of the Exchequer
Yvette Cooper is said to be favourite to become Ed Miliband's Shadow Chancellor of the Exchequer as the new Labour leader gets set to announce his shadow cabinet today. It is believed that eight of Ed Miliband's team will be women with the Labour Party adamant that a more balanced representation should be seen in the Shadow Cabinet. This is a very important time for the Labour Party which is lo...
Read MoreBarclays Bank gags Guardian over tax plans
Barclays Bank has today been successful in a High Court action to force the Guardian newspaper to take down copies of seven leaked documents which have been shown on the company's new site. The documents relate to elaborate schemes which were instigated by SCM, Barclay's capital markets division, in what is seen by many as a scheme to avoid significant tax payments.
The documents ha...
Could council tax rises be on the way to cover pension fund deficits?
We have covered on numerous occasions the problem of local authority pension schemes, which are final salary based and very expensive to run, and the ticking timebomb which is getting ever louder. This subject ties in with an announcement from Bob Holloway, the administrator of public sector worker pension schemes, who has confirmed that these particular schemes are becoming more and more expensiv...
Read MoreCould bankers take away the pressure from David Cameron?
There is much intrigue and speculation regarding the fact that Vince Cable has been given a very long leash by the UK coalition government having issued a number of provocative and in some cases demeaning statements over the last few days. He has attacked the UK banking arena suggesting that "spivs" are still very prominent and he has also upset the apple cart with open criticism of the coalition...
Read MoreRoyal Bank of Scotland - the spin now the sin!
Less than 24 hours after the UK government announced a 90% reduction in bonuses to be paid to Royal Bank of Scotland staff we are starting to see the full picture with regards to the eventual bonus package. While the initial request for a £1 billion bonus fund was turned down and replaced by a £175 million cash alternative, there are rumours today that as much as £600 million in Royal Bank of S...
Read More