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Icb To Admit Its Reforms Will Cost Banks Billions

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8754654/ICB-to-admit-its-reforms-will-cost-banks-billions.html

The ICB will unveil its own cost/benefit analysis as part of the recommendations in its final report published tomorrow, with analysts suggesting the figure could be as high as £10bn. The report is also likely to say that legislating for one of the most controversial changes – ring-fencing of retail operations – could be fast-tracked.

Other measures such as increasing capital requirements for the banks could be delayed so that the Basel III rules are understood and in place, possibly as late as 2019.

Political tension over the direction of the reform were highlighted last night when the former treasurer of the Conservative Party said that the ring-fencing proposals should be dropped.

Sir Michael Spencer, the chief executive of ICAP, said: “If we implement ring-fencing unilaterally – and no other country is proposing to follow – there will be a major brain drain from the City.

“The City would be badly damaged and our global leadership in finance threatened.

O dear how will the UK recover from not having the feckwits here who led the world in taking huge risks which ultimately fecked over the taxpayer and help plunge the world into depression.

I didn't realise there where brains in the City.

And the cost is £10bn, and how much have the idiots at the banks cost the taxpayer?

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It's time to hunt down the bankers...chase them from one tax exile to the next; arrest them - locate their (our) stolen assets and take them back.

I understand Iceland is doing just that...but cannot find a link.

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It's amazing they are still pushing this 'special talent' line. The only talent I have seen is one for enriching themselves at our expense and the only reason not to ring fence is because they want to continue gambling with other peoples money.

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8754654/ICB-to-admit-its-reforms-will-cost-banks-billions.html

O dear how will the UK recover from not having the feckwits here who led the world in taking huge risks which ultimately fecked over the taxpayer and help plunge the world into depression.

I didn't realise there where brains in the City.

And the cost is £10bn, and how much have the idiots at the banks cost the taxpayer?

How many billions were paid out during the last round of bonuses?

However, I don't expect that the mainstream media will pick up on that angle. Just a load more stuff about how the poor banks can't afford to be subject to regulation that would stop them dumping all the risk onto the taxpayer.

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The estimated cost of the annual subsidy the taxpayer gives to the banks (so they can pay themselves humungous bonuses) was over £40bn last year and £100bn the year before that. (Bank of England methodology)

EDIT: warning - information derived from partially destroyed memory cells.

The indirect subsidy, that is very hard to measure, is the "too big to fail" subsidy. Banks can borrow money in the markets at a lower rate than they otherwise could in the knowledge that they will be bailed out. This is particularly so in the case of the banks with sizeable investment banking operations i.e. RBS and Barclays.

It will certainly be well above the £10bn annual cost that the ICB talks about. While it will increase the costs of banking, it simply transfers the costs from the tax payers back to the bankers and shareholders, who should be paying.

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  • 334 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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