Lunchtime Links: The levy would appear to create an incentive for overseas banks to move out of London
Information on the UK banking levy has been published. Unfortunately, it is so dense as to be incomprehensible to anyone who does not have an entire day to decipher it. It also accidentally-on-purpose omits the crucial rate at which the levy will be imposed.
Even at this stage, however, it is starting to look like there could be some side effects. According to the BBC, which has spoken to the Treasury, the levy will:
...apply to the global balance sheets of UK banks and the UK operations of banks from other countries and will be introduced in January 2011.
This being so, surely it will prove opportune for 'banks from other countries' to move some of their balance sheets to countries where there is no levy (ie. Asia)? "This could be a potential consequence, but is a consultation period, so let's see how it goes," says a spokesperson for the BBA.
Even after the levy, corporation tax cuts could leave banks better off. (Guardian)
It is now 6.2% cheaper to live in affluent luxury in Switzerland. (Financial News)
Goldman bankers accused of 'mind-boggling insensitivity.' (Daily Mail)
Morgan Stanley has kept trading risk at a high level in a bid to catch up after falling behind in 2008-2009. (Alphaville)
Morgan Stanley has 80% of Goldman Sachs revenues. This quarter, its profits were just one-fifth of Goldman's. (WSJ)
James Gorman declared himself not satisfied with Morgan Stanley's results. (WSJ)
Citadel's cutting 5% of its staff. (FinAlternatives)
Sharp rise in third quarter profits at Blackrock. (Reuters)
SocGen has hired a head of credit research. (CreditFlux)
"When you are on the fifth version of something and working late, you are not going to have your paycheck piled up in front of you. What is going to keep you going is that you are interested in the business." (Bloomberg)
Guy Hands in danger of becoming poor. (MusicWeek)
How do I spin male modelling on my CV? (WallStreetOasis)
Yes, Morgan Stanley has lost $91 million. But there is nothing to worry about. I once dropped a ten pound note outside a guitar shop in Uxbridge. (WallStreetOasis)
