There is a meeting of the G7 Finance ministers taking place Friday and Saturday in Iqaluit (Canada).
According to this Britain and France are going to push the idea of creating a huge fund to act as a buffer most likely financed by a "Tobin Tax."
"Mr. Darling was more open to Mr. Flaherty's capital-requirement proposals, but the British minister is coming to Iqaluit with his own proposal: A formal resolution procedure, or âliving will,â as he calls it, for dealing with bank collapses in advance, with funds and mechanisms ready as a de facto insurance system.
The European governments are bringing a proposal to reinforce the banking system by creating a huge fund to act as a buffer to protect against future crises and fund bailouts. It would likely get its funds from an international transaction tax of a small fraction of a per cent on each trade (sometimes known as a âTobin Tax,â after its inventor).
That idea, once obscure and unlikely, was endorsed by British Prime Minister Gordon Brown in December, and has been backed enthusiastically by the French and German governments. But both Canadians and Americans have given it the cold shoulder, although former Federal Reserve chairman Paul Volcker, who has become an influential figure in the White House, has spoken in its favour.
Both Mr. Darling and Ms. Lagarde said they would push the idea in Iqaluit."
http://www.theglobeandmail.com/news...-competing-national-interests/article1456934/
To me this sounds like the insurance type fund that everyone is talking about and I don't think it would be financed by a tobin tax but by a direct levy on the banks themselves..
-Guru
According to this Britain and France are going to push the idea of creating a huge fund to act as a buffer most likely financed by a "Tobin Tax."
"Mr. Darling was more open to Mr. Flaherty's capital-requirement proposals, but the British minister is coming to Iqaluit with his own proposal: A formal resolution procedure, or âliving will,â as he calls it, for dealing with bank collapses in advance, with funds and mechanisms ready as a de facto insurance system.
The European governments are bringing a proposal to reinforce the banking system by creating a huge fund to act as a buffer to protect against future crises and fund bailouts. It would likely get its funds from an international transaction tax of a small fraction of a per cent on each trade (sometimes known as a âTobin Tax,â after its inventor).
That idea, once obscure and unlikely, was endorsed by British Prime Minister Gordon Brown in December, and has been backed enthusiastically by the French and German governments. But both Canadians and Americans have given it the cold shoulder, although former Federal Reserve chairman Paul Volcker, who has become an influential figure in the White House, has spoken in its favour.
Both Mr. Darling and Ms. Lagarde said they would push the idea in Iqaluit."
http://www.theglobeandmail.com/news...-competing-national-interests/article1456934/
To me this sounds like the insurance type fund that everyone is talking about and I don't think it would be financed by a tobin tax but by a direct levy on the banks themselves..
-Guru
To me when you read between the lines it sounds like even the Europeans know a Tobin Tax ain't going to happen. 