LONDON (MarketWatch) -- Tension over a tax the U.K. government has made on banker bonuses grew as a top regulator reportedly said it wouldn't be bad if banks departed the country. Several banks -- and other City institutions like broker-dealer Tullett Prebon that aren't necessarily impacted by the tax -- have made noises about parts of their British-based staff outside the country after Chancellor Alistair Darling announced a tax on 50% of banker bonuses above 25,000 pounds, or roughly $40,000. See full story. But a senior Bank of England official told the BBC World Service on Friday that departures wouldn't be such a bad thing. http://www.marketwatch.com/story/uk-bonus-tensions-grow-as-regulator-says-leave-2009-12-18 ROFL ! Excellent news for the rest of financial centers in Europe, or ?
"They" want to kill the economy. Cap-and-trade, healthcare, tax hikes, outsourcing, "sin tax" on the FIRE industry.
What everyone seems to forget is that most bankers even if they could wouldn't want to move to say Swiss. They're British, have grown up in this country, have friends and family here, their children are bedded down in school etc etc. It's a big move to totally relocate to a different country and often money is not the most important thing.
I wonder if this UK Chancelor is going to change his tune. Was probably a bluff, which it looks like he was called on. GS paid $3.2Bil in taxes to the UK last year. The highest of any financial firm. How could this guy say it would not be a bad thing if banks left. Other than RBS and Lloyds, UK has no risk in having them do business in their country. He is insane. NY Post - GS want to move 1000 highest paid UK emloyees to Spain Adiós