Financial Regulatory Forum

UK slaps tax on bank bonuses, to spread pain later

A trader looks at her screens before Britain's Chancellor of the Exchequer Alistair Darling's pre-budget speech, on a trading floor in London December 9, 2009.  Darling set the stage for the coming election, announcing on Wednesday a one-off super tax on bank bonuses and other higher taxes on the rich.    REUTERS/Andrew Winning (BRITAIN - Tags: BUSINESS POLITICS EMPLOYMENT)  By Sumeet Desai

LONDON, Dec 9 (Reuters) – Britain’s Labour government slapped a one-off levy on bank bonuses on Wednesday and said it would hike income tax for all but the poorest in 2011, delaying action to tackle a record deficit until after an election it is expected to lose.

Despite warnings by ratings agencies that debt has to be reined in, finance minister Alistair Darling revised up his borrowing forecast for this year to a record 177.6 billion pounds ($290 billion) or 12.6 percent of GDP, from 175 billion.

Next year’s borrowing forecast was also revised up by 3 billion pounds in a pre-budget report that would normally be full of populist giveaways given an election is due in less than six months and Labour is well behind in opinion polls.

Darling tried to set out Labour’s electoral pitch, promising to protect schools, hospitals and the police from the sharp spending cuts that will have to be felt almost everywhere else.

He also talked about getting the wealthy to pay their share, trying to draw a distinction between Labour as the party of hard-working families against a Conservative Party it says is more interested in protecting the interests of the rich.

Bank bonus windfall tax won’t dampen risk-ECB Weber

    FRANKFURT, Dec 9 (Reuters) – A windfall tax on bankers’ bonuses, as is now being discussed in the UK, would not be effective in encouraging less risky behaviour among banks in the long term, ECB Governing Council member Axel Weber said. (more…)

Barclays says bonus tax against G20 spirit

   HORSHAM, England, Dec 8 (Reuters) – Imposing a tax on bankers’ bonuses would not be in line with the principles for compensation set out by leading G20 countries last year, the head of Barclays’ <BARC.L> investment bank said on Tuesday. (more…)

Banks blasted by Congress, regulators in U.S., UK

Banks blasted by Congress, regulators in U.S., UK
   By Kevin Drawbaugh
   WASHINGTON, Oct 22 (Reuters) – Big banks took a beating from government on Thursday, both in the U.S. Congress where lawmakers backed tougher industry rules, and from U.S. and UK regulators who moved aggressively to restrain bankers’ pay. (more…)

Britain’s ailing Labour takes aim at bankers

Britain's Chancellor of the Exchequer Alistair Darling leaves 11 Downing Street for the weekly Prime Minister's Questions session at the House of Commons in central London July 1, 2009. REUTERS/Andrew Winning (BRITAIN POLITICS BUSINESS)   By Sumeet Desai and Matt Falloon
   BRIGHTON, England, Sept 28 (Reuters) – Britain’s Labour Party, trailing in opinion polls ahead of an election next year, promised on Monday to clamp down on bank bonuses and said it had the right policies to overcome recession. (more…)

G20 takes charge of world economy at U.S. summit

From L-R, France's President Nicolas Sarkozy, U.S. President Barack Obama and Britain's Prime Minister Gordon Brown walk as they hold a news conference at the G20 Summit in the Pittsburgh Convention Center in Pittsburgh, Pennsylvania, September 25, 2009.  REUTERS/Jacques Witt/Pool    (UNITED STATES)   By Sumeet Desai and Chris Buckley
   PITTSBURGH, Sept 25 (Reuters) – The Group of 20 will become the forum for global economic management, giving rising powers such as China more clout, and roll out tougher rules on bank capital by the end of 2012, a draft communique said on Friday. (more…)

G20 final text has accord on banker bonuses

Pittsburgh Police Sgt. Lavonnie Bickerstaff stands in front of a G20 logo at the Multi-Agency Communications Center in PIttsburgh, Pennsylvania September 22, 2009. The MACC is the central point of communications for the agencies involved in the operational security efforts for the G20/Pittsburgh Summit.  REUTERS/Jason Cohn (UNITED STATES POLITICS BUSINESS)    PITTSBURGH, Sept 25 (Reuters) – The Group of 20 nations reached a final agreement on regulating banker bonuses that calls on countries’ regulators to apply corrective measures, such as higher capital requirements, on non-complying institutions, a European G20 source said on Friday. (more…)

EU to support stimulus, push on trade talks at G20

Jean-Pierre Jouyet, head of French market watchdog AMF, is seen in this file photo taken May 18, 2007. REUTERS/Benoit Tessier (FRANCE) By Jan Strupczewski
BRUSSELS, Sept 16 (Reuters) – The European Union will support maintaining policies that poured trillions of dollars into economies and call on a G20 meeting for progress on trade talks to help boost a recovery, a draft policy document said.

(more…)

G20 heads for crackdown on bank bonuses

By Huw Jones and Anna Willard
PARIS, Sept 15 (Reuters) – Banks with low levels of capital will not be able to offer large bonuses under guidelines the G20 is set to discuss this month, the Financial Stability Board said on Tuesday.

“It’s important that firms conserve profits so they can rebuild capital and support lending,” FSB Chairman Mario Draghi told a news conference.

(more…)

EU ministers pledge to end banker bonus party

Sweden's Finance Minister Anders Borg addresses a news conference during an European Union finance ministers meeting in Brussels September 2, 2009.     REUTERS/Francois Lenoir By Anna Willard
BRUSSELS, Sept 2 (Reuters) – European finance ministers pledged on Wednesday to clamp down on banker bonuses, raising the prospect of spreading such payouts over years or demanding back money if business turns sour.

(more…)

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