Monday, 11 January 2010

London Mayor Says 9,000 Bankers May Quit City Over Bonus Tax

Jan. 11 (Bloomberg) -- London Mayor Boris Johnson said that as many as 9,000 bankers may leave the U.K. capital’s financial district as a result of a 50 percent tax on bonuses announced last month.
Amen and good riddance.
Admittedly it would be much better if there was general consensus for the formation of an international regulatory agency and a thorough crackdown on tax-havens but since there is little chance of that happening anytime in the forseeable future (which is a practical way of addressing the problem), I'll settle for the bankers exodus while extending my heartfelt apologies to my friends that work in the City. Yes, let them leave and try their luck elsewhere. Meanwhile the world will softly slumber until the next crisis looms ominously in the horizon.

Millions of people worldwide lost their jobs and had their livelihoods compromised owing to the extravagances, short-sightedness, irresponsible behaviour (and, yes, incompetence) of a large part of Wall Street and the City. Governments worldwide rushed to prop the decaying structure -using public money- by buying off toxic debt and keeping the patient on life-support.

One would expect that the opportunity would be seized by the world governments to bring some order in the house but it seems pretty certain now that this unprecedented chance has been squandered.

Anyone who wandered the streets of the City of London in 2007 and 2008, the (g)olden days of yonder, will know of the references herein. You say you want to use my tax money to keep the bonus culture (and the associated decadent structures that go with it) thriving? Disgraceful.


HooLooVoo said...

Simon Jenkins of the Guardian writes:
"There will be a tidal wave of rage. Over the next two weeks the executives of the leading British and American banks will announce that some £50bn is to be taken from accumulated profit and handed over, not to shareholders or taxpayers, but to themselves. It will be the most outrageous contempt of ­democratic authority in modern times."

The full article can be found here: