Financial Regulatory Forum

FACTBOX-State of play on global bank levies pre-UK budget

June 21 (Reuters) – British Finance Minister George Osborne will unveil plans for an extra tax on banks to pay for bailouts on Tuesday as part of a budget expected to be the most austere in 30 years.

He has said the tax will be introduced regardless of whether other countries follow suit. The following is the state of play of plans elsewhere in the world to shield taxpayers from having to shore up banks again.

If Britain adopted a tax similar to the one touted in the United States, it would raise 3.5 billion to 5 billion pounds ($5.19 billion to $7.42 billion), analysts have estimated.

GROUP OF 20

The International Monetary Fund will present its final report on a possible bank tax to G20 leaders in Toronto this week but the group’s finance ministers agreed earlier this month not to pursue a uniform bank levy due to opposition from Canada, Brazil and Japan.

Instead, the G20 — whose members also include the United States, France, Germany and Britain — will agree the principle that banks should pay for their own bailouts in future, leaving the method up to each country.

Citi to raise $20 billion in capital to repay U.S.

By Dan Wilchins

NEW YORK, Dec 14 (Reuters) – Citigroup laid out a plan to repay the money it owes the U.S. government, including issuing about $20 billion of capital, as the bank looks to end the executive pay restrictions that came with the funds.

The deal will begin to dissolve what has been a troubled relationship between Citigroup and the government, which bailed out the bank with three rescues last year and this year but also pressured it to sell businesses and remove executives.

The transaction is also a sign of a shift in the financial crisis, as regulators worry less about injecting capital into banks to stabilize them and more about properly monitoring banks to prevent the next crisis.

U.S. cuts estimate of bank bailout costs by $200 bln

By Glenn Somerville

WASHINGTON, Dec 6 (Reuters) – The projected long-term cost of the U.S. government’s bailout of the nation’s big banks is going to be at least $200 billion less than previously thought, a Treasury Department official said.

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UK bank bailout cost hits 850 billion sterling – watchdog

banking_landing_page_image By Kirstin Ridley

LONDON, Dec 4 (Reuters) – The price tag for bailing out UK banks has hit 850 billion pounds ($1.4 trillion) but Britain’s spending watchdog says the final cost to taxpayers will not be known for years.

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