Gordon Brown to announce closure of the City of London

[Gonzo]

Dubai, Singapore and Hong Kong rub their hands with glee.

Brown tries to win votes with banking greed laws

Alistair Darling and Gordon Brown will widen Labour’s attack on banking’s “greed and recklessness” today in an attempt to create a new election divide with the Conservatives.

The Chancellor will tell the party conference in Brighton that legislation to be introduced in the next few weeks will scrap automatic year-after-year bonuses and stop executives getting payouts unless they can prove they are deserved. Bonuses will be deferred over a period so that they can be clawed back if they are not warranted by long-term performance.

http://www.timesonline.co.uk/tol/new...cle6851731.ece

I have long held the view that the threat to the existence of the City of London comes not from Frankfurt or Paris but from the Far East, and in recent years the Middle East. Places where English is widely spoken.

Some of you may think that this business is no loss in the long term. You might be right, but I have done pretty well out of it for the last few years so would be sorry to see it go.

Do you think we will see an exodus of finance firms from London or will they hang on until after the next General Election?

[TinTrump]

Brown was more than happy to indulge the City's activities without any thought for long-term implications. He'll react in a similar short-sighted way now.

As I'm in the Middle East I'll put forward some arguments against it for being a competitor:
1) Security. These will be big, soft targets. A couple of plots against Western sites have recently been foiled but mainly they are aimed at military bases with more protection. There's a lot of agitation by locals where I am but its not widely reported outside the region.
2) Judicial system. Just remember what happened to some Brits in Saudi when a couple were killed in either terrorist attacks or an internal feud (depending upon who's stroy you believe). Civil liberties aren't protected here as they are in Europe. Flogging anyone?
3) Ramadan. Muslims work half a day for a period of 4 weeks. Companies would have to compensate (which they do by requiring non-muslims to carry the extra burden).
4) Employment laws. Heavily in favour of the employer.
5) Entertainment. In some countries you won’t be allowed a good bottle of wine with your meal. And the nightlife's poor.
6) Working week. Varies from state to state but usually Sunday-Thursday so at odds with the West.

[BoredBloke]

Can anybody think of a place near Europe where they already have a fairly active finance market and where the rules are not as strict as what this shower are proposing. My bet is they will up sticks and head over here to Geneva. I bet the Swiss are looking on in glee - almost as much as when that nice Mr Hitler used the place to dump all his Nazi gold.

It's suprising how little Brown saw wrong with the current situation when the banks were booming and the bonuses were leading to big fat chunks of tax for him.

[Sysman]

My bet is they will up sticks and head over here to Geneva. I bet the Swiss are looking on in glee

I read recently that several hedge funds had already migrated to Switzerland, with more considering it.

It's suprising how little Brown saw wrong with the current situation when the banks were booming and the bonuses were leading to big fat chunks of tax for him.

How big and fat were those chunks of tax really? Corporation tax yes, but many of the multi-millionaires and billionaires were taking advantage of non-dom status.

At the end of the day the super rich are the most mobile and will bog off if it suits them.

[Menelaus]

As you might know, most of my clients are banks - and I'm looking at house pricing Amsterdam, Brussels, Paris and Frankfurt as a consequence of Browns commentary.

[Sysman]

A few months ago someone here posted links to some rather nice looking pads in Germany and they struck me as excellent value.

[HairyArsedBloke]

Do you think we will see an exodus of finance firms from London or will they hang on until after the next General Election?

The boys in the flash suits will calmly walk up to the snot goblin and whisper in his ear two words: "Gilt Strike". In a flash, all those things he said he would do to the City will be forgotten.

[SantaClaus]

Yep, hedge funds are already deserting the city.
Labour will leave a legacy similar to the 1970's by the time they have finished.

Why would a trader want to pay 50% tax when they can pay less in Zurich.

[The Lone Gunman]

As you might know, most of my clients are banks - and I'm looking at house pricing Amsterdam, Brussels, Paris and Frankfurt as a consequence of Browns commentary.

It wont be Europe. The EU leaders are ALL looking to legislate the bonus culture out of banking. What is the US doing?
The big banks are going to go to somewhere where the big bonus earners can enjoy living and not get penalised for their income. Places that already have experience in the financial sectors and where they will find enthusiastice, skilled and plentiful staff to do the daily grind.
I would guess at Hong Kong or Malysia. It depends whether the tax benefits for the businesses out weigh the loss of personal bonuses.

[BoredBloke]

It wont be Europe. The EU leaders are ALL looking to legislate the bonus culture out of banking. What is the US doing?
The big banks are going to go to somewhere where the big bonus earners can enjoy living and not get penalised for their income. Places that already have experience in the financial sectors and where they will find enthusiastice, skilled and plentiful staff to do the daily grind.
I would guess at Hong Kong or Malysia. It depends whether the tax benefits for the businesses out weigh the loss of personal bonuses.

Yes - Switzerland. It's not in the EU and it has a significant financial sector