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Banks' Claims They Will Move Abroad Are 'empty Threats' Says Fsb Boss Svein Andresen

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8457094/Banks-claims-they-will-move-abroad-are-empty-threats-says-Financial-Stability-Board-boss-Svein-Andresen.html

'Big banks in the UK and US have threatened to "migrate" if they are subjected to strict new regulations, taking tax revenues and future investment with them.

However, big banks are not necessary an attractive prospect, Svein Andresen, secretary general of the Financial Stability Board (FSB), argued at the International Monetary Fund's (IMF) spring meeting in Washington.

Countries may refuse to let big banks redomicile because, as the new host country, they would be responsible for the cost of any potential bail-out. Mr Andresen argued that ratings agencies could downgrade both the sovereign debt and the bank's bonds if they felt the risk was too big for the country to bear.

He said: "You shouldn't take it for granted at all that other jurisdictions would want the banks." '

it's always amazed ol pedro that not one of our politicians has ever questioned whether any otehr country would want our banks.They've been bluffing our leaders for some time to extract taxpayer backstopping of stupid property bets,subsidised IR's=profits=bonuses to keep the talent etc.

There was an interesting editorial in the Sunday Times the other week about banks threatening to leave the UK.

The argument was that the financial sector made the pound stronger, making it harder for our manufacturing and service industries to export.

Losing some banks would weaken the pound and allow other industry sectors to thrive (though the article ignored the effect on the cost of imports, particularly fuel and food). The higher profits would increase tax revenues, (partly) compensating for the decrease in tax receipts from the financial sector.

From my point of view, wealthy bankers also distort the internal UK market for goods and services for everyone else in the UK. 'Trickle down'? Rubbish.

We should call the banker's bluff. Trouble is, no politician has the spine to do so.

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There was an interesting editorial in the Sunday Times the other week about banks threatening to leave the UK.

The argument was that the financial sector made the pound stronger, making it harder for our manufacturing and service industries to export.

Losing some banks would weaken the pound and allow other industry sectors to thrive (though the article ignored the effect on the cost of imports, particularly fuel and food). The higher profits would increase tax revenues, (partly) compensating for the decrease in tax receipts from the financial sector.

From my point of view, wealthy bankers also distort the internal UK market for goods and services for everyone else in the UK. 'Trickle down'? Rubbish.

We should call the banker's bluff. Trouble is, no politician has the spine to do so.

What country would want the credit risk of this bloated but failed business sector? (failed as a business but not failed for extracting cash for its over paid executives).

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What country would want the credit risk of this bloated but failed business sector? (failed as a business but not failed for extracting cash for its over paid executives).

The type of country where the leaders could get some share of it too, and not care less what impact it all had on the population. Which is, of course, why they're currently in the UK.

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if the laibilites for their mortgage books sink the pound,then a country with lots of commodities eg Zimbabwe,might be an option.

Perhaps they should all relocate to China where the penalty for failure is a bullet in the head and a bill for the cost of it.

http://www.telegraph.co.uk/news/worldnews/asia/china/4315627/Two-sentenced-to-death-over-China-melamine-milk-scandal.html

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Interesting how it's taken for granted in that article that the host country would be responsible for any bail out. Banks are businesses - it's not up to national governments to bail them out when they screw up.

I'd say it's more likely that the banksters themselves would be loath to move somewhere which couldn't underwrite their losses. It wouldn't be a case of the country saying no.

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Interesting how it's taken for granted in that article that the host country would be responsible for any bail out. Banks are businesses - it's not up to national governments to bail them out when they screw up.

I'd say it's more likely that the banksters themselves would be loath to move somewhere which couldn't underwrite their losses. It wouldn't be a case of the country saying no.

Exactly. Why the hell would the banks move somewhere they can't offload the downside risk onto the taxpayer? We are the only ones stupid enough for that, so they are stuck here.

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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