Downing Street Says » Transaction tax

Asked if the Prime Minister had been aware that his proposals on a transaction tax over the weekend would be knocked back so quickly, the PMS said that it was important to put this into context; the Prime Minister had set out four options; the insurance fees for systemic risk, resolution funds, contingent capital arrangements and a global financial transactions levy. The Prime Minister believed that these were four interesting options that should be explored further and it was important that the financial community and governments around the world understood that we had to give the public confidence in the future of financial institutions and that there also needed to be a fairer balance of risks and rewards. The Prime Minister wanted to start the debate and people had expressed their views. Nobody had said that it was not the right thing to be debating at this time and the Prime Minister did not favour one particular option over the others; he thought they all deserved serious attention.

Put that the transaction tax was no longer a realistic option given the opposition to it, the PMS said that the Prime Minister wanted to get a debate going and felt that these four ideas should be looked at. Any of the ideas put forward had to have a global impact, had to be fair and had to complement the action that had already been taken.

Put that the US had already said that they weren’t interested in pursuing a transaction tax, the PMS said that the US Treasury Secretary’s comments had been in response to a specific question and in his press conference he had been more positive. Nobody had been looking for a definitive answer over this weekend; the Prime Minister had been looking for a sense of where the finance leaders were in terms of responding to his call.

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World leaders must know that the Banks are not going to shoulder any responsibility for this call or proposal. Who does the transactions? is it not the ordinary persons or business entity? are the banks not going to push any cost of transaction to customers? the call must be thought off seriously.
Comment by joseph oddei — 10 Nov 2009 on 8:47 pm | Link

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» Monday, November 9, 2009

Transaction tax

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