1/4% Tax on all stock trades pushed in NY Times today

May 9 (Reuters) - Germany's finance minister said a controversial plan by 11 euro zone countries to introduce a financial transaction tax was not an urgent matter and it could take a long time to be finalised.

"We are just beginning this discussion. It is not a major concern to be very frank," Wolfgang Schaeuble said in response to a question about the planned tax at a conference.

"This year, next year...it's not (a) major problem," he said.

http://uk.reuters.com/article/2013/05/09/bank-tax-schaeuble-idUKL9N0DP00520130509
 
Schaeuble said he wanted to see the tax now.

"I don't want to wait until such a tax is introduced worldwide. Otherwise we would risk not only the stability of our financial markets ... but we would also be endangering the legitimacy in the public eye for the entire system.

"That's why I'm fighting with such determination for a financial transaction tax. It might not be able to stop the ludicrous developments in financial markets but it would at least brake them a bit.

"I'm very much in favour of Europe leading the way," he said. "That can possibly mean that certain speculative business models are no longer profitable. But that is what we want."
More...

Slight change of tune since 2011.
 
A rare article where it is said very well.

---------------

Tobin tax to 'dry up' secondary market, academic warns

Richard Comotto, an academic at the International Capital Market Association (ICMA) Centre at Reading University

the supply of liquid assets to investors will dry up," he said. "Buying will become far riskier, and investors will be expected to go direct to the issuer."

the "real question" was how issuers would feel comfortable with participating directly in auctions, without the intermediary of primary dealers or market makers, where there is no guidance on price because there is no secondary market suggesting where existing bonds are trading.

"How will investors value their portfolio once they have bought them?" he asked.

"And if they wish to get out of a particular investment – for example, because a bond is downgraded – how will they sell it?

"There will be nobody there to buy it and sell it onto another investor because the taxation will have removed the intermediaries."

Comotto stressed that the secondary market with market makers and primary dealers played a vital part in distributing and valuing securities.

He argued that it was "really rare" for investors – even buy-and-hold investors – to hold a security all the way through to maturity.

"We are reducing the ability of investors to efficiently manage their portfolios," he said.



http://www.google.com/url?sa=t&rct=...uIHAAQ&usg=AFQjCNGmS6V9taL5mf3X39mh9wNt4HafEw
 
Bank of England's King:

I don't think it is likely to help very much and indeed the thing I find most striking is that here in Europe, I can't find anyone in the central banking community who thinks it's a good idea.

He says this is partly because "the words FTT mean very different things to different people [...] I don’t think we’re remotely close to getting any clear view on this and I can understand why politicians [have voiced scepticism]"

"I can assure you there is an enormous scepticism from those who even appear to be behind it," he adds.

http://www.telegraph.co.uk/finance/.../10058026/Business-news-and-markets-live.html

-----------------------------------------------------------------------------

Sir Mervyn said that there was "enormous sceptiscism even from quarters behind" the tax, and that he understood why some were not willing to be vocal in their opposition. There are concerns that many are self-censoring their concerns about the measure as it is not politically safe to oppose taxes on activities seen to relate to banking.

http://www.cityam.com/live-blog
 
You must log in or register to reply here.
Back
Top