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| Support for tax to curb bonuses | Support for tax to curb bonuses |
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| The boss of the UK's financial services watchdog says he would be happy to consider the use of a new tax on banks to prevent excessive bonus payments. | The boss of the UK's financial services watchdog says he would be happy to consider the use of a new tax on banks to prevent excessive bonus payments. |
| Lord Turner, chairman of the Financial Services Authority (FSA), also said the financial services sector had "grown beyond a socially reasonable size". | Lord Turner, chairman of the Financial Services Authority (FSA), also said the financial services sector had "grown beyond a socially reasonable size". |
| His comments came in an a roundtable discussion in Prospect magazine. | His comments came in an a roundtable discussion in Prospect magazine. |
| The FSA he was "not setting out any new policy", while the government said tax policy was a matter for the chancellor. | The FSA he was "not setting out any new policy", while the government said tax policy was a matter for the chancellor. |
| If we introduce the wrong kind of regulation or the wrong kind of taxes we could [drive] business abroad Brian Capon, British Bankers' Association | If we introduce the wrong kind of regulation or the wrong kind of taxes we could [drive] business abroad Brian Capon, British Bankers' Association |
| 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. |
| 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". |
| Lord Turner also condemned some financial innovation as "socially useless", questioning whether "the world would have been better off without any credit default swaps". | |
| 'Very difficult' | |
| 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. |
| Lord Turner conceded that "the problem is that getting global agreement will be very difficult". | |
| G20 leaders have been discussing bonuses and said in April that they would clamp down on excessive pay. | |
| French banks have recently agreed to a new set of rules. These mean there will be penalties for traders who lose money, as well as rewards for success. | |
| French President Nicolas Sarkozy has said he will press for tougher controls on bankers' bonuses at the next G20 summit in the US city of Pittsburgh in September. | |
| '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 had "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 had "concerns" about executive pay. |
| And earlier this month, the FSA said it was introducing new rules to ensure bank bonuses were 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 were not guaranteed for more than a year, and that senior employees should have their bonuses spread over three years. |
| These rules are due to come into effect from January. | These rules are due 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 |