1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
http://www.guardian.co.uk/business/2009/nov/23/imf-head-turmoil-warning
Strauss-Kahn had recently ruled out a transaction tax on City profits, such as a new version of the "Tobin tax" which prime minister Gordon Brown is lobbying for.
Today, though, the IMF head softened his position â and even appeared to acknowledge Brown's efforts in this area.
"This is a very lively debate, and there are many good ideas being floated â especially here in the United Kingdom."
Strauss-Kahn had recently ruled out a transaction tax on City profits, such as a new version of the "Tobin tax" which prime minister Gordon Brown is lobbying for.
Today, though, the IMF head softened his position â and even appeared to acknowledge Brown's efforts in this area.
"This is a very lively debate, and there are many good ideas being floated â especially here in the United Kingdom."
Going Around this morning fwiw
With support for Treasury Secretary Tim Geithner waning, JPMorgan (JPM) CEO Jamie Dimon is emerging as a potential successor, sources say. Dimon has recently been making frequent visits to Capitol Hill, and earlier this month published an op-ed that urged the government to allow large institutions that take big risks to collapse. Dimon appears to have an advocate in bank analyst Dick Bove
With support for Treasury Secretary Tim Geithner waning, JPMorgan (JPM) CEO Jamie Dimon is emerging as a potential successor, sources say. Dimon has recently been making frequent visits to Capitol Hill, and earlier this month published an op-ed that urged the government to allow large institutions that take big risks to collapse. Dimon appears to have an advocate in bank analyst Dick Bove
Brown, Cameron to Set Out U.K. Economic Growth Plans
http://www.bloomberg.com/apps/news?pid=20601087&sid=as6t0vwOkRLY&pos=9
While Brown will repeat the suggestion of a Tobin tax on banking that he aired at the Group of 20 finance ministersâ meeting earlier this month, he will say the idea could only work if adopted globally. The U.S. has rejected the proposal.
Brown will still tell bankers they must expect to pay for the costs of rescuing them.
âMake no mistake, we must agree to international action to redress the balance of risk and reward between the public and the financial sector so that it reflects fully the potential damage of financial failure and the cost of preventing it,â the prime minister will say.
http://www.bloomberg.com/apps/news?pid=20601087&sid=as6t0vwOkRLY&pos=9
While Brown will repeat the suggestion of a Tobin tax on banking that he aired at the Group of 20 finance ministersâ meeting earlier this month, he will say the idea could only work if adopted globally. The U.S. has rejected the proposal.
Brown will still tell bankers they must expect to pay for the costs of rescuing them.
âMake no mistake, we must agree to international action to redress the balance of risk and reward between the public and the financial sector so that it reflects fully the potential damage of financial failure and the cost of preventing it,â the prime minister will say.
Mohamed A Ramady--Bailout insurance would help to spare the taxpayer
http://www.thenational.ae/apps/pbcs...1/BUSINESS/711219960/1058&template=columnists
The big question is posed: is the economic and moral relationship between Big Finance and taxpayers symmetrical and fair? The answer is obvious. The size of the financial system has exploded, populated by superbanks that, if they get hit by a loss of confidence, can bring the whole system down. Not doing anything is not an option. Given a generous government safety net, the risk of repeating costly mistakes and going unpunished is always inherent in the system. Economists call this moral hazard. There seems to be a way out that may be more acceptable than the Tobin tax for some, and the insurance industry provides a potential answer.
Most of us have taken out one form of insurance and pay premiums to protect against unforeseen risks. If we are extremely careful, the following yearâs premium might be reduced or held the same. If we are unlucky, we receive a payout, but unlike government bailouts, this insurance payout is not free because we pay for it. Some will argue that government bailouts of distressed financial institutions are in a different league from personal insurance cover, as the potential damage to the overall economy and consumer confidence is substantially higher than the potential cost of government bailouts.
Who would charge this insurance to the financial sector? Central banks can be the explicit insurers, as they are the implicit bailout insurers. Instead of becoming last-resort lenders, central banks might also become the insurers of first resort and force financial institutions to think twice before engaging in risky financial activities. This is what is appealing to some of those who are dissenting against Mr Brownâs Tobin tax alternative, as they argue that a Tobin transaction tax cannot work unless all financial centres fall in line.
http://www.thenational.ae/apps/pbcs...1/BUSINESS/711219960/1058&template=columnists
The big question is posed: is the economic and moral relationship between Big Finance and taxpayers symmetrical and fair? The answer is obvious. The size of the financial system has exploded, populated by superbanks that, if they get hit by a loss of confidence, can bring the whole system down. Not doing anything is not an option. Given a generous government safety net, the risk of repeating costly mistakes and going unpunished is always inherent in the system. Economists call this moral hazard. There seems to be a way out that may be more acceptable than the Tobin tax for some, and the insurance industry provides a potential answer.
Most of us have taken out one form of insurance and pay premiums to protect against unforeseen risks. If we are extremely careful, the following yearâs premium might be reduced or held the same. If we are unlucky, we receive a payout, but unlike government bailouts, this insurance payout is not free because we pay for it. Some will argue that government bailouts of distressed financial institutions are in a different league from personal insurance cover, as the potential damage to the overall economy and consumer confidence is substantially higher than the potential cost of government bailouts.
Who would charge this insurance to the financial sector? Central banks can be the explicit insurers, as they are the implicit bailout insurers. Instead of becoming last-resort lenders, central banks might also become the insurers of first resort and force financial institutions to think twice before engaging in risky financial activities. This is what is appealing to some of those who are dissenting against Mr Brownâs Tobin tax alternative, as they argue that a Tobin transaction tax cannot work unless all financial centres fall in line.
Another good read posted a few minutes ago,
http://www.reuters.com/article/ousivMolt/idUSTRE5AM2OP20091123
http://www.reuters.com/article/ousivMolt/idUSTRE5AM2OP20091123
Lord turner cracking a little, he use to say all trading was socially useless now from todays CBI conference:
16:20pm: It's the final question and answer session of the day, and Turner is on the attack again. A Tobin tax (or generic tax on all financial transactions) should not be ruled out just because it would be difficult to do. Yes, he admitted, trading, including some speculative trading, is 'good' and 'helps liquidity', you can't "flip this over and say all and limitless trading is good' and so that transaction taxes shouldn't be off limits." The same should apply to the debate on 'too big to fail banks'.
16:20pm: It's the final question and answer session of the day, and Turner is on the attack again. A Tobin tax (or generic tax on all financial transactions) should not be ruled out just because it would be difficult to do. Yes, he admitted, trading, including some speculative trading, is 'good' and 'helps liquidity', you can't "flip this over and say all and limitless trading is good' and so that transaction taxes shouldn't be off limits." The same should apply to the debate on 'too big to fail banks'.
More from Turner
http://www.lse.co.uk/FinanceNews.as...watchdog_FSA_sees_tougher_trading_supervision
The Tobin tax, named after the economist James Tobin who proposed it as a way to dampen speculation in cross-border foreign exchange trading over 20 years ago, has never found enough global support to be introduced.
Turner was criticised by Britain's financial district in the summer for raising the possibility of such a tax and the United States has said it would not introduce a transaction tax.
'We should be willing to think about whether that is possible and desirable,' Turner said.
Traders help to provide liquidity to markets but not all trading was limitlessly beneficial, he said.
'I think the chances of it happening are relatively small,' Turner said.
http://www.lse.co.uk/FinanceNews.as...watchdog_FSA_sees_tougher_trading_supervision
The Tobin tax, named after the economist James Tobin who proposed it as a way to dampen speculation in cross-border foreign exchange trading over 20 years ago, has never found enough global support to be introduced.
Turner was criticised by Britain's financial district in the summer for raising the possibility of such a tax and the United States has said it would not introduce a transaction tax.
'We should be willing to think about whether that is possible and desirable,' Turner said.
Traders help to provide liquidity to markets but not all trading was limitlessly beneficial, he said.
'I think the chances of it happening are relatively small,' Turner said.