Stiglitz is a huge supporter of this tax! He is a controversial figure , especially when it comes to his bad relationship with Larry Summers, read up on this about his time in the world bank/imf era.
http://en.wikipedia.org/wiki/Joseph_Stiglitz
1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
Stiglitz is a huge supporter of this tax! He is a controversial figure , especially when it comes to his bad relationship with Larry Summers, read up on this about his time in the world bank/imf era.
http://en.wikipedia.org/wiki/Joseph_Stiglitz
I am more worried domestically then internationally. I think the us doesnt really care to much about what happens over there. If all the better if the europeans push it and we dont then more business for us. I think the administration thinks they are clowns. Hence we did not agree to any of the financial reforms they wanted when it came to bonuses and what not. The domestic legislation affect us here in the US. Plus even if there was internation push it would take a while to agree on everything, here dont put it past our legislators to pass this , then it can happen overnight!
I wonder how much face time these people will be getting with the prez? This is afterall being billed as "Obama's Jobs Summit", so you know he'll be listening. Let's hope there's good coverage from this summit.
The Scary thing is we see people on that partial list that are pro tax, and have spoken about it pretty heavily these past few weeks, and I dont see anyone that we know of that are against the tax. I would like to see someone, atleast one
I do not know if Obama's Economic team will be there, like Larry Sumemrs etc.. If you find anything on that let me know.IMF studying bank transaction tax option - Lipsky
a reuters report
http://www.reuters.com/article/bondsNews/idUSN3015550520091130
Lipsky noted a Tobin tax, first proposed by Nobel laureate James Tobin in the 1970's, was restricted to foreign exchange transactions and intended to suppress transactions rather than raise revenue.
"While some of the current supporters of a transactions tax intend it in Tobin's sense, others have extolled such a tax as a potential source of earmarked revenues for a variety of purposes," Lipsky said, according to the text of his speech.
a reuters report
http://www.reuters.com/article/bondsNews/idUSN3015550520091130
Lipsky noted a Tobin tax, first proposed by Nobel laureate James Tobin in the 1970's, was restricted to foreign exchange transactions and intended to suppress transactions rather than raise revenue.
"While some of the current supporters of a transactions tax intend it in Tobin's sense, others have extolled such a tax as a potential source of earmarked revenues for a variety of purposes," Lipsky said, according to the text of his speech.
Icap's Spencer rails against Turner's 'socially useless' claim
http://www.efinancialnews.com/privateequity/index/content/1055908087
The City of London's highest profile broker has said he was âgenuinely offendedâ by the assertion made by Lord Adair Turner, chairman of the Financial Services Authority, that much of banking was socially useless.
Speaking at the Financial News Awards for Excellence in Investment Banking in London this evening, Michael Spencer, chairman of UK inter-dealer broker Icap and treasurer of the Conservative Party, said: âWhen Lord Turner recently said that much of banking was socially useless I was genuinely offended.
âUsing his logic I presume he would describe Porsche as socially useless for making cars that go twice the speed limit or Jimmy Choo for making shoes in dozens of different colours.â
Lord Turner questioned the social utility of banking in an interview with Prospect magazine in September. He said: âClearly, the bits of the financial system that relate to fixed income securities, trading, derivatives, hedging, but possibly also aspects of the asset management industry and equity trading, have grown beyond a socially reasonable size.
"Consider what percentage of highly intelligent people from our best universities went into financial services. I think some [financial innovation] is socially useless.â
Later that month he said in a speech at the City Banquet at The Mansion House in London: âNot everything that a financial system does is socially useful; and sometimes bits of it can get too big and it would be better for society if they got smaller. Anybody who thinks those statements are contradictory is refusing to face the complex reality of financial markets.â
Spencer, a 33-year veteran of the City, also railed against Lord Turnerâs recommendation of a Tobin Tax on financial transactions, which he said would only damage London.
âI am personally hugely proud of the City. I think our regulators should be as well. We pay their salaries and without our success they would be out of a job!
Spencer, a staunch Conservative supporter, blames the Labour Governmentâs tripartite approach to financial supervision for not spotting the early warning signs of the crisis.
âNo one had overall responsibility and relations were strained; it was a formula for failure,â he said.
He added: âA massively over-leveraged financial pyramid was steadily built, unnoticed by politicians, central banks, regulators or the public. All enjoying the apparent, though temporary, benefits of cheap and abundant credit.â
Spencer also pointed out that the collapse and subsequent rescue of Bradford & Bingley, HBOS and Northern Rock was not caused by "the scourge of âcasino bankingâ or overpaid traders earning grotesque bonuses, but by very irresponsible acquisitions, bad lending policies or weak fundingâ.
He welcomed the return of the Bank of England as central supervisor. âJudgement, a critical component in any successful regulatory philosophy, will be reintroduced. Box ticking and compliance alone, however ingeniously devised, can never create an adequate framework for every eventuality. The next crisis, and one day it will happen but hopefully not for many years, is very unlikely to be identical to the last.â
He added that the Bank of England will be given the resources to offer competitive salaries to recruit and return quality regulators, a policy the FSA is also expected to implement.
The new regulator would also have the responsibility to implement new capital requirements and the discretion and power to increase a bankâs capital and liquidity if judged necessary.
Finally, he told the gathering of investment bankers that he hoped a return of overall supervision to the Bank of England would usher in more balance. âI personally think it is unhelpful and inappropriate for the head of the FSA to state that he wishes âpeople should be very frightened of the FSA'.
âThe vast majority of banks and financial services companies are not run by crooks and are more than happy to work cooperatively towards achieving good regulation with good regulators. It is in all of our interests.â
http://www.efinancialnews.com/privateequity/index/content/1055908087
The City of London's highest profile broker has said he was âgenuinely offendedâ by the assertion made by Lord Adair Turner, chairman of the Financial Services Authority, that much of banking was socially useless.
Speaking at the Financial News Awards for Excellence in Investment Banking in London this evening, Michael Spencer, chairman of UK inter-dealer broker Icap and treasurer of the Conservative Party, said: âWhen Lord Turner recently said that much of banking was socially useless I was genuinely offended.
âUsing his logic I presume he would describe Porsche as socially useless for making cars that go twice the speed limit or Jimmy Choo for making shoes in dozens of different colours.â
Lord Turner questioned the social utility of banking in an interview with Prospect magazine in September. He said: âClearly, the bits of the financial system that relate to fixed income securities, trading, derivatives, hedging, but possibly also aspects of the asset management industry and equity trading, have grown beyond a socially reasonable size.
"Consider what percentage of highly intelligent people from our best universities went into financial services. I think some [financial innovation] is socially useless.â
Later that month he said in a speech at the City Banquet at The Mansion House in London: âNot everything that a financial system does is socially useful; and sometimes bits of it can get too big and it would be better for society if they got smaller. Anybody who thinks those statements are contradictory is refusing to face the complex reality of financial markets.â
Spencer, a 33-year veteran of the City, also railed against Lord Turnerâs recommendation of a Tobin Tax on financial transactions, which he said would only damage London.
âI am personally hugely proud of the City. I think our regulators should be as well. We pay their salaries and without our success they would be out of a job!
Spencer, a staunch Conservative supporter, blames the Labour Governmentâs tripartite approach to financial supervision for not spotting the early warning signs of the crisis.
âNo one had overall responsibility and relations were strained; it was a formula for failure,â he said.
He added: âA massively over-leveraged financial pyramid was steadily built, unnoticed by politicians, central banks, regulators or the public. All enjoying the apparent, though temporary, benefits of cheap and abundant credit.â
Spencer also pointed out that the collapse and subsequent rescue of Bradford & Bingley, HBOS and Northern Rock was not caused by "the scourge of âcasino bankingâ or overpaid traders earning grotesque bonuses, but by very irresponsible acquisitions, bad lending policies or weak fundingâ.
He welcomed the return of the Bank of England as central supervisor. âJudgement, a critical component in any successful regulatory philosophy, will be reintroduced. Box ticking and compliance alone, however ingeniously devised, can never create an adequate framework for every eventuality. The next crisis, and one day it will happen but hopefully not for many years, is very unlikely to be identical to the last.â
He added that the Bank of England will be given the resources to offer competitive salaries to recruit and return quality regulators, a policy the FSA is also expected to implement.
The new regulator would also have the responsibility to implement new capital requirements and the discretion and power to increase a bankâs capital and liquidity if judged necessary.
Finally, he told the gathering of investment bankers that he hoped a return of overall supervision to the Bank of England would usher in more balance. âI personally think it is unhelpful and inappropriate for the head of the FSA to state that he wishes âpeople should be very frightened of the FSA'.
âThe vast majority of banks and financial services companies are not run by crooks and are more than happy to work cooperatively towards achieving good regulation with good regulators. It is in all of our interests.â
Greg Mankiw
Is a Tobin Tax feasible?
http://gregmankiw.blogspot.com/2009/11/is-tobin-tax-feasible_27.html
The Tobin tax--a tax on financial transactions--is very much in the news. Before one gets to the issue of the desirability of such a tax, one has to address the question of whether the policy is even feasible. I am skeptical. Financial transactions are easy to move: If two parties to a financial contract can just as easily sign and enforce the contract in the Cayman Islands as in New York or London, there is little point in US or UK policymakers imposing a Tobin tax. Unless, of course, moving the finance industry offshore is the policy goal.
Is a Tobin Tax feasible?
http://gregmankiw.blogspot.com/2009/11/is-tobin-tax-feasible_27.html
The Tobin tax--a tax on financial transactions--is very much in the news. Before one gets to the issue of the desirability of such a tax, one has to address the question of whether the policy is even feasible. I am skeptical. Financial transactions are easy to move: If two parties to a financial contract can just as easily sign and enforce the contract in the Cayman Islands as in New York or London, there is little point in US or UK policymakers imposing a Tobin tax. Unless, of course, moving the finance industry offshore is the policy goal.
More on the Tobin Tax
http://taxprof.typepad.com/taxprof_blog/2009/11/more-on-the-tobin-tax.html
links to numerous articles
http://taxprof.typepad.com/taxprof_blog/2009/11/more-on-the-tobin-tax.html
links to numerous articles
Dems sour on stock transaction tax.
http://news.google.com/news/url?sa=...www.politico.com/news/stories/1109/30015.html
http://news.google.com/news/url?sa=...www.politico.com/news/stories/1109/30015.html
It's also scary that this tax somehow becomes the hot topic of the day and generates more unwanted publicity.Quote from rsikit:
The Scary thing is we see people on that partial list that are pro tax, and have spoken about it pretty heavily these past few weeks, and I dont see anyone that we know of that are against the tax. I would like to see someone, atleast one