James Moore: Only the US has muscle to make banks behave

Share
Related Topics

So plucky little Britain stands alone as the only country to set out concrete proposals to crack down on the appalling greed shown by bankers.

France has said it is planning a similar move, although there are no details yet and a fight is already brewing. Meanwhile other financial centres have discretely been running marketing events in an attempt to spirit away at least some of London's business. There appears to be plenty of interest.

As any number of banking executives have pointed out, the financial services industry is very mobile. The threat to quit Britain over the tax made by some bankers is both sickening, and cynical. But it is real.

That's the problem with unilateral measures. And that's why they have yet to be followed by anyone else. Until, that is, President Barack Obama decided to join in. The advantage he has is that it's much harder to threaten the US President. He sits at the head of the world's biggest economy, many of the world's biggest banks are American and he has the tools to haul them into line.

Even places like Switzerland fights shy of taking the US on. Just ask UBS which has been forced to provide details of hundreds of suspected US tax evaders to the authorities. In terms of finance you just don't mess with the US. Which is why Mr Obama can table a plan such as his "crisis responsibility fee" which will raise $90bn over 10 years. The US banks might moan, but they know they had better not start making threats, or it will be the worse for them.

Bankers are cynical people, devoted solely to the cause of making money. Their executives are adept at playing national governments off against each other. One reason that Britain was so attractive to them was that its "light touch" regulatory regime imposed so few burdens on them. Much less than in most other major economies. Given that, we can hardly be surprised if they fail to follow our lead.

Ultimately, though, even Britain's rivals know that action does need to be taken to rein in this bloated and grotesque industry. The only way to do that is through co-ordinated international action. Action that will, because of its pivotal position in the global economy, have to be led by the US.

React Now

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
iJobs Job Widget
iJobs General

Year 5 Teacher

£80 - £140 per day: Randstad Education Leeds: Year 5 Teacher KS2 teaching job...

Software Developer

£35000 - £45000 Per Annum Pensions Scheme After 6 Months: Clearwater People So...

Systems Analyst / Business Analyst - Central London

£35000 - £37000 per annum + Benefits: Ashdown Group: Systems Analyst / Busines...

Senior Change Engineer (Network, Cisco, Juniper) £30k

£30000 - £35000 per annum + Benefits: Ampersand Consulting LLP: Senior Change ...

Day In a Page

Read Next
David Cameron has painted a scary picture of what life would be like under a Labour government  

You want constitutional change? Fixed-term parliaments have already done the job

Steve Richards
Nigel Farage has backed DJ Mike Read's new Ukip song  

Ukip Calypso by Mike Read? The horror! The horror!

Patrick Strudwick
Oscar Pistorius sentencing: The athlete's wealth and notoriety have provoked a long overdue debate on South African prisons

'They poured water on, then electrified me...'

If Oscar Pistorius is sent to jail, his experience will not be that of other inmates
James Wharton: The former Guard now fighting discrimination against gay soldiers

The former Guard now fighting discrimination against gay soldiers

Life after the Army has brought new battles for the LGBT activist James Wharton
Ebola in the US: Panic over the virus threatens to infect President Obama's midterms

Panic over Ebola threatens to infect the midterms

Just one person has died, yet November's elections may be affected by what Republicans call 'Obama's Katrina', says Rupert Cornwell
Premier League coaches join the RSC to swap the tricks of their trades

Darling, you were fabulous! But offside...

Premier League coaches are joining the RSC to learn acting skills, and in turn they will teach its actors to play football. Nick Clark finds out why
How to dress with authority: Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear

How to dress with authority

Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear
New book on Joy Division's Ian Curtis sheds new light on the life of the late singer

New book on Ian Curtis sheds fresh light on the life of the late singer

'Joy Division were making art... Ian was for real' says author Jon Savage
Sean Harris: A rare interview with British acting's secret weapon

Sean Harris: A rare interview with British acting's secret weapon

The Bafta-winner talks Hollywood, being branded a psycho, and how Barbra Streisand is his true inspiration
Tim Minchin, interview: The musician, comedian and world's favourite ginger is on scorching form

Tim Minchin interview

For a no-holds-barred comedian who is scathing about woolly thinking and oppressive religiosity, he is surprisingly gentle in person
Boris Johnson's boozing won't win the puritan vote

Boris's boozing won't win the puritan vote

Many of us Brits still disapprove of conspicuous consumption – it's the way we were raised, says DJ Taylor
Ash frontman Tim Wheeler reveals how he came to terms with his father's dementia

Tim Wheeler: Alzheimer's, memories and my dad

Wheeler's dad suffered from Alzheimer's for three years. When he died, there was only one way the Ash frontman knew how to respond: with a heartfelt solo album
Hugh Bonneville & Peter James: 'Peter loves his classic cars; I've always pootled along fine with a Mini Metro. I think I lack his panache'

How We Met: Hugh Bonneville & Peter James

'Peter loves his classic cars; I've always pootled along fine with a Mini Metro. I think I lack his panache'
Bill Granger recipes: Our chef's heavenly crab dishes don't need hours of preparation

Bill Granger's heavenly crab recipes

Scared off by the strain of shelling a crab? Let a fishmonger do the hard work so you can focus on getting the flavours right
Radamel Falcao: How faith and love drive the Colombian to glory

Radamel Falcao: How faith and love drive the Colombian to glory

After a remarkable conversion from reckless defender to prolific striker, Monaco's ace says he wants to make his loan deal at Old Trafford permanent
Terry Venables: Premier League managers must not be allowed to dictate who plays and who does not play for England

Terry Venables column

Premier League managers must not be allowed to dictate who plays and who does not play for England
The Inside Word: Brendan Rodgers looks to the future while Roy Hodgson is ghost of seasons past

Michael Calvin's Inside Word

Brendan Rodgers looks to the future while Roy Hodgson is ghost of seasons past