FSA chairman backs ‘banking tax’ on pay


by Newswire    
10:44 am - August 27th 2009

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The boss of the UK’s financial watchdog has said he backs a new tax on banks as a means to prevent excess bonus payments in the industry.

Lord Turner, chairman of the Financial Services Authority (FSA), told Prospect magazine much of the activities of the City of London were “socially useless”.
…
And earlier this month, the FSA said it was introducing new rules to ensure bank bonuses are not guaranteed for more than a year, and that senior employees should have their bonuses spread over three years.

…more at the BBC website

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Reader comments


1. Rob Knight

It’s not a tax on pay, it’s a “Tobin tax” on financial transactions.

It would also have to be internationally agreed, which makes any prospect of its introduction in the short term quite unlikely.

2. Jay

Seriously: nobody cares what the chairman of the FSA thinks.

The FSA is the most useless, toothless, spineless sack-of-shite ever to appear in a neoliberal’s wet dream. It is almost unique in that it has absolutely no merit whatsoever; not one saving grace, or purpose.

3. Luis Enrique

Rob is quite right, it is not a “banker’s tax” on pay in the sense of taxing banker’s pay. He wants to tax revenues on the basis that doing so would reduce the gross profit, which is divided up between bonuses for bankers and returns to shareholders. He is “going after the revenues” in the sense I belabored recently.

4. Paul

Probably worth having a read of the Prospect article guys! Regardless of opinion on the FSA (I know there are plenty) it’s makes for an interesting read…
http://www.prospectmagazine.co.uk/2009/08/how-to-tame-global-finance/


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