December 3rd in Uncategorized by Editor .

City Sinking From Sustained Attack

The City is being attacked on multiple fronts as everyone tries to stick the boot in whilst it’s down.

Lord Myners, the City Minister, has revealed that at least 5,000 bankers will be paid more than £1 million this year which has roused ministers into action.

Plans for a bonus crackdown are looming imminently despite protestations from Stephen Hester, RBS’s chief executive, who has attacked the Government publicly, saying that it could lose valuable staff if it could …

The City is being attacked on multiple fronts as everyone tries to stick the boot in whilst it’s down.

Lord Myners, the City Minister, has revealed that at least 5,000 bankers will be paid more than £1 million this year which has roused ministers into action.

Plans for a bonus crackdown are looming imminently despite protestations from Stephen Hester, RBS’s chief executive, who has attacked the Government publicly, saying that it could lose valuable staff if it could not pay £1 billion of bonuses. Even the board of RBS threatening to resign might not be enough to stop the government intervention.

Then there is Nicholas Sarkozy, who revealed that the chip on his shoulder is almost big enough to make up for his lack of stature earlier this week. Hailing the appointment of Michel Barnier, a former agriculture minister in his government, Sarkozy delighted in blaming the Anglo-Saxon model for the global economic downturn:

“Do you know what it means for me to see for the first time in 50 years a French European commissioner in charge of the internal market, including financial services, including the City?”

“I want the world to see the victory of the European model, which has nothing to do with the excesses of financial capitalism.”

Added to which, under new EU rules announced yesterday, the UK has lost its veto of orders from European regulators even if they impinge upon national fiscal responsibilities. Under the new rules, a country will only be able to defeat an order from the regulators if it gets a blocking majority among the 27 EU states. How popular are we in Europe?

With a 50% tax rate on its way as well, who is going to be left in London to help it compete with the likes of New York, Hong Kong and Singapore?

We can’t sell it on its weather and beautiful beaches.

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