Punishing banks is costly foolishness
HSBC bank may leave Britain and station its HQ abroad. Result? Loss of jobs, loss of revenue to the Exchequer, loss of prestige for the City, big warning to other banks not to come to Britain. This of course is the inevitable consequence of punishing the banks with huge taxes and lorryloads of regulations to satisfy public rage over the recession and bonuses.
Already one in four hedge funds has departed, leaving a gap of billions in tax take for George Osborne. The silly, penal attitude towards banking means Britain is cutting off its nose to spite its face. The City pays some £55billion in taxes every year and that includes bad years.
We need that money and if that means taking a deep breath and saying so then that is what theGovernment should do instead of toadying to every whim of public anger and envy.