[lbo-talk] Imagine Bernanke calling Wall St, 'Socially Useless Banks'

Ira Glazer ira.glazer at gmail.com
Fri Oct 2 09:13:55 PDT 2009


[I know this is a bit old, but it was referenced by an article in today's Guardian, 'IMF presses for tax on banks' risky behaviour' http://www.guardian.co.uk/business/2009/oct/02/imf-urges-bank-levy]

http://www.guardian.co.uk/business/2009/aug/27/fsa-bonus-city-banks-tax

...Lord Turner, chairman of the Financial Services Authority, warned bankers that he would support a new wave of taxes on the City to prevent excessive profiteering if they continue to take excessive risks....

...In a searing critique of the industry, Lord Turner described much of the City's activities as "socially useless" and questioned whether it has grown too large....

..."If you want to stop excessive pay in a swollen financial sector you have to reduce the size of that sector or apply special taxes to its pre-remuneration profit. Higher capital requirements against trading activities will be our most powerful tool to eliminate excessive activity and profits.

"And if increased capital requirements are insufficient I am happy to consider taxes on financial transactions – Tobin taxes...."



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