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| Call for bank tax to curb bonuses | Call for bank tax to curb bonuses |
| (40 minutes later) | |
| The boss of the UK's financial services watchdog says a new tax on banks could help prevent excessive bonus payments in the industry. | The boss of the UK's financial services watchdog says a new tax on banks could help prevent excessive bonus payments in the industry. |
| Lord Turner, chairman of the Financial Services Authority (FSA), told Prospect magazine many of the activities of the City of London were "socially useless". | |
| The FSA said Lord Turner's comments came in a roundtable discussion, and were "not setting out any new policy". | The FSA said Lord Turner's comments came in a roundtable discussion, and were "not setting out any new policy". |
| A government spokesman said that tax policy was a matter for the chancellor. | A government spokesman said that tax policy was a matter for the chancellor. |
| Lord Turner told Prospect magazine that a tax on financial transactions in the City would cut banks' profits, and thereby reduce the funds available for bonuses. | Lord Turner told Prospect magazine that a tax on financial transactions in the City would cut banks' profits, and thereby reduce the funds available for bonuses. |
| If we introduce the wrong kind of regulation or the wrong kind of taxes we could [drive] business abroad British Bankers' Association spokesman Brian Capon | If we introduce the wrong kind of regulation or the wrong kind of taxes we could [drive] business abroad British Bankers' Association spokesman Brian Capon |
| He said such a tax would be "a nice sensible revenue source for funding global public goods". | He said such a tax would be "a nice sensible revenue source for funding global public goods". |
| British Bankers' Association spokesman Brian Capon said the UK was the top centre in the world for global banking, "an achievement that we shouldn't take lightly". | British Bankers' Association spokesman Brian Capon said the UK was the top centre in the world for global banking, "an achievement that we shouldn't take lightly". |
| "If we introduce the wrong kind of regulation or the wrong kind of taxes we could so easily lose that position by driving business abroad," he said. | "If we introduce the wrong kind of regulation or the wrong kind of taxes we could so easily lose that position by driving business abroad," he said. |
| 'A ploy' | 'A ploy' |
| The FSA was formed in 1997 to regulate the UK's financial services sector and some analysts have suggested there may be political reasons for Lord Turner to be tough on the City at the moment. | The FSA was formed in 1997 to regulate the UK's financial services sector and some analysts have suggested there may be political reasons for Lord Turner to be tough on the City at the moment. |
| "[The comments] may be a ploy to persuade Mr Osborne and the Conservatives that were they to be elected they should retain the FSA rather than pass the baton for regulation to the Bank of England, which is one of the shadow cabinet's proposals," James Bevan from CCLA Investment Management told the BBC. | "[The comments] may be a ploy to persuade Mr Osborne and the Conservatives that were they to be elected they should retain the FSA rather than pass the baton for regulation to the Bank of England, which is one of the shadow cabinet's proposals," James Bevan from CCLA Investment Management told the BBC. |
| This is not the first time Lord Turner has spoken out against large bonuses in the banking sector. He said back in June that the FSA did have "concerns" about executive pay. | This is not the first time Lord Turner has spoken out against large bonuses in the banking sector. He said back in June that the FSA did have "concerns" about executive pay. |
| And earlier this month, the FSA said it was introducing new rules to ensure bank bonuses are not guaranteed for more than a year, and that senior employees should have their bonuses spread over three years. | And earlier this month, the FSA said it was introducing new rules to ensure bank bonuses are not guaranteed for more than a year, and that senior employees should have their bonuses spread over three years. |
| These rules are to come into effect from January. | These rules are to come into effect from January. |
| Lord Turner's opinions on the issue carry particular weight because he is both chairman of the financial regulator and a city insider who used to hold senior positions at both Standard Chartered and Merrill Lynch. | Lord Turner's opinions on the issue carry particular weight because he is both chairman of the financial regulator and a city insider who used to hold senior positions at both Standard Chartered and Merrill Lynch. |
| Do you think a new banking tax is a good idea? Do you work in the financial sector? You can send us your views and experiences using the form below: | Do you think a new banking tax is a good idea? Do you work in the financial sector? You can send us your views and experiences using the form below: |
| A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. | A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |