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Late Lunchtime Links: Tax banks to save Europe; publish the name and address of every RBS bonus recipient

The bonus 'issue' is not going to go away. Nor is the call for higher taxes on bankers.

In today's Prime Minister's Questions, Ed Miliband attacked David Cameron for reneging on his promise to restrict bonuses to 2k at state owned banks and for cutting taxes on the banking industry.

While Cameron shows little appetite for increasing taxes beyond the proposed 2.5bn banking levy, the same cannot be said elsewhere.

Reuters reports that an internal report from the European Commission posits a 0.2% tax on euro banking assets as one way of funding the European Stability Mechanism and thereby saving the euro. Alphaville points out that this sounds a little circular given that countries like Ireland have sought European financial assistance after bailing out their banks.

Separately, the Telegraph reports that Conservative MSP Alex Johnstone is calling for 'full disclosure' for bankers. Like farmers in receipt of the Single Farm Payment, Johnstone thinks bankers in receipt of bonuses at RBS and other taxpayer subsidised institutions should have their names, addresses, and the size of their awards on a public database. Were this to happen, it seems fair to assume that no one would want to work there.

The coalition government is still "very much fighting" to restrict bank bonuses, says Liberal Democrat Treasury spokesman Lord Oakeshott. (Pestowire)

Not a single MP on a committee with a Tory majority chose to defend Barclays or give the benefit of the doubt to bonus-paying banks. (Pestowire)

Osborne says nothing is off the table in the bank bonus push. (Businessweek)

Oliver Letwin, the bankers' banker, has been leading negotiations for the government. (Evening Standard)

British Bankers Association says British bankers are feeling frustrated. (Bloomberg)

Eric Daniels will receive a 2m bonus. It is inconceivable that he will turn it down. (Pestowire)

Bob Diamond will earn less as the chief exec of the whole of Barclays than as the chief exec of BarCap. (Sky)

Santander could also pull out of UK bonus talks. (Telegraph)

Thanks to the fiat-money fractional reserve system, bankers have become the ruling elite and as a result, entire nations are going bust. (321Gold)

Goldman will pay more to people who emphasise client service and client relationships. (Telegraph)

When Goldman bankers reach a professional milestone, they will be required to be undergo a Goldman Sachs culture course. (Business Insider)

All principal-backed activities at Goldman Sachs will now be done in the name of client execution only. (Alphaville)

Event driven female French hedge fund gives 25% of performance fees to charity. (Reuters)

BarCap's head of global electronic equities has left at a crucial time. (Financial News)

Why doing a PhD is often a waste of time. (Economist)

Does a man's salary matter? (Match)

Why so many rich people don't feel very rich. (New York Times)

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AUTHOReFinancialCareers UK Insider Comment
  • Ch
    Chan
    13 January 2011

    Iam long hoping for a shift to the east..afterall the business thrust is there. The crazy argument of london being convinient location (timewise) should be overlooked because people in banks anyways work long hours . We should be closer to the clients ie asia and get out of this overtaxed slum.

  • Sa
    Sad
    13 January 2011

    Is the Economist Vince Cable's pen name? After getting caught on the Sky issue, a little caution is due? Don't get me wrong. Many bankers are spineless. They can't leave. Much like those on the dole. But those who stay are the same useless lot who got us in the crisis in the first place. Too used to a good life and getting what they can today. As for tomorrow, what about waiting a little...

  • Fi
    FinanceCowboy
    13 January 2011

    Economist's reasoning is as false as only an economist's can be.
    Yes, there is a cost threshold, but once that is breached and the cost of staying in the UK is too large, people will leave.
    Also what he is getting wrong is that it is all about fluctuation, businesses leaving naturally might not be replaced, the hot new hedge fund might decide to open its office's in a more friendly jurisdiction. In a relative short period of time, this will erode London's competitive position. Already it has fallen from its No. 1 rank as world financial center, and over time Asian countries will continue to gain in attractiveness, while London loses more and more of its appeal.

  • Ec
    Economist
    12 January 2011

    Alistair Darling's 50% tax on bonuses should be revived. And don't give the fallacy that bankers will leave the country if they are taxed more. The FT warned about this when Darling imposed the tax at the last budget a year ago, and was there an exodus? I don't think so. Moreover, PWC conducted an economic report that reported that bankers will not be significantly better off in a country like Switzerland (considered to be a low tax country), and combined with the opportunity cost of actually moving countries, finding accommodation, relocating family etc, it appears that the bankers decide to actually remain in the country. So please, don't come out with the line that a progressive tax on bonuses, or a Tobin Tax on financial transactions will lead to an exodus, because that shows a real lack of understanding of economics.

  • Ma
    Mark
    12 January 2011

    ..I think you mean Ed rather than David Miliband there.

    Wishful thinking perhaps?

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