Archive : Tag

HSBC opts to stay in ‘competitive’ London. (It was never going to leave anyway)

POSTED ON February 15th  - POSTED IN Blog, Financial Regulation, Tax

HSBCThere’s been a lot of talk for a long time about a threat from globe-trotting HSBC to move its headquarters from London to Hong Kong. It seems there’s been a resolution of the question for now, of sorts. As Bloomberg puts it:

“HSBC Holdings Plc recommitted its future to London, ending 10 months of deliberations over whether to move its headquarters, after securing concessions from the U.K. government on regulation and taxes. The shares rose.”

That’s the Competitiveness Agenda at work, right there. Shower goodies on mobile capital and its owners for fear that they’ll flee elsewhere. More specifically, via Reuters:

Admati and Hellwig: global finance is not an Olympic competition

POSTED ON June 29th  - POSTED IN Blog, Financial Regulation, What is competitiveness?
Anat Admati of Stanford Graduate School of Business

Bankers’ New Clothes: co-author Anat Admati, of Stanford Graduate School of Business

(Updated with Krugman comments.) Two years ago Anat Admati and Martin Hellwig published a popular book about banking, The Bankers’ New Clothes, which Martin Wolf in the FT described as “the most important book to emerge from the [Global Financial] Crisis.”

The book pulls off the trick of explaining a lot of technical points about banking in highly accessible detail, and perhaps its most valuable contribution is to have explained so clearly why it is foolish to run banks with only small amounts of loss-absorbing equity. Partly because of the way bank equity is so misleadingly portrayed in the media and elsewhere – as a cost to a bank, and by mindless extrapolation to an economy as a whole – bankers have been able to get away with blunting urgent reforms.

How much should the UK subsidise HSBC for a ‘competitive’ financial sector?

POSTED ON June 9th  - POSTED IN Blog, Financial Regulation, Tax
City-of-London-300x65

The UK Financial Centre: soon to evaporate in a puff of bank levies?

Here we go again. Look at this latest piece of financial sector lobbying, courtesy of Reuters, which normally strives to be a fair and balanced news organisation.

This requires quite some unpacking. To begin with:

“Britain is prepared to review a tax on banks to head off the threat that large multinational banks like HSBC could leave London’s financial centre and shift their operations overseas, the Sunday Times reported, citing industry sources.

Finance minister George Osborne is to lay the ground for such a review in a speech this week, by saying that the newly-elected Conservative government is committed to maintaining the competitiveness of banks, the paper reported.”

Dodd-frank, competitiveness and the cost of financial regulation

POSTED ON May 27th  - POSTED IN Financial Regulation
Dodd-Frank is down there somewhere

Dodd-Frank is down there somewhere

This month a group called the American Action Forum (AAF) published a document entitled “The Growth Consequences of Dodd-Frank,” looking at the U.S. Dodd-Frank legislation introduced to curb financial excesses in the wake of the global financial crisis that first emerged in 2007.

Reflecting the complexity and — how shall we put this delicately? — dodginess of large parts of the financial sector, Dodd-Frank is a huge and unwieldy creature. It’s also been set upon by sharks: read this stunning (though out of date) Matt Taibbi article about how it’s done. As he put it:

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