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Special Report - Why London can live without its bankers
"Speculation has intensified in the run-up to the April 11 publication of an interim report into the future of British financial services by the Independent Commission on Banking (ICB). The banks fear it will recommend costly reforms. A public admission by Diamond last week that he had "an obligation on behalf of shareholders" to look at alternative tax bases, and repeated warnings from senior city figures about the consequences of a high-profile defection, are seen as thinly veiled attempts to influence the commission's thinking.
But research by Reuters shows the commission should be in a strong position to counter such threats, since the impact of any big bank departures on the economy, government finances and the City of London (LSE: CIN.L - news) 's pre-eminence as a financial centre would be extremely limited. In a crucial year for global finance, as the regulatory landscape is substantially redrawn, this may embolden the committee. That in turn would help the Conservative-led UK government strike the balance it needs between sounding tough on an industry whose excesses anger the public, and appeasing some of the Conservatives' top donors............."
Special Report - Why London can live without its bankers
"Speculation has intensified in the run-up to the April 11 publication of an interim report into the future of British financial services by the Independent Commission on Banking (ICB). The banks fear it will recommend costly reforms. A public admission by Diamond last week that he had "an obligation on behalf of shareholders" to look at alternative tax bases, and repeated warnings from senior city figures about the consequences of a high-profile defection, are seen as thinly veiled attempts to influence the commission's thinking.
But research by Reuters shows the commission should be in a strong position to counter such threats, since the impact of any big bank departures on the economy, government finances and the City of London (LSE: CIN.L - news) 's pre-eminence as a financial centre would be extremely limited. In a crucial year for global finance, as the regulatory landscape is substantially redrawn, this may embolden the committee. That in turn would help the Conservative-led UK government strike the balance it needs between sounding tough on an industry whose excesses anger the public, and appeasing some of the Conservatives' top donors............."
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