City chief: We need to tax fatcats; BANKS.THE head of the UK's financial watchdog has called for a new tax to curb greedy City bonuses. Lord Turner, chairman of the Financial Services Authority The Financial Services Authority ("FSA") is an independent non-departmental public body and quasi-judicial body that regulates the financial services industry in the United Kingdom. Its main office is based in Canary Wharf, London, with another office in Edinburgh. , said he would be happy to see banks and other institutions hit in the pocket. A new finance tax would squeeze the banks, leave less cash for lining bosses' pockets and reduce the odds on another credit crunch Credit Crunch An economic condition whereby investment capital is difficult to obtain. Banks and investors become weary of lending funds to corporations thereby driving up the price of debt products for borrowers. . Lord Turner described the City's activities as "socially useless" and claimed the financial sector was "swollen". The FSA FSA Financial Services Authority FSA Food Standards Agency (UK) FSA Farm Service Agency (USDA) FSA Financial Services Agency (Japan) last night insisted his comments were made in an informal discussion and not part of any new policy. The tax was first suggested by American economist James Tobin in the 70s. Lord Turner is a big player in the City but has no formal say on tax policy. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion