The UK's 50 percent bank bonus tax announced earlier this month sparked warnings and speculation that it would drive banking jobs away from London. Now Goldman Sachs reportedly has put flesh on those rumors, by signaling UK authorities it will shift as many as 1,000 jobs to Spain to escape the employer-paid tax.
The UK Independent newspaper describes Goldman's threat as a "warning shot across the Government's bows." It quote an unnamed industry source saying, "This is a bargaining position more than anything."
Goldman has around 5,000 staff in London, but only a "relatively modest" number in Spain, according to the Independent. Goldman says it's looking at all options while negotiating with UK authorities over the bonus tax.
The paper also observes that money broker Tullett Prebon offered a portion of its 700 London-based employees the chance to relocate in response to the tax.
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