Goldman Sachs teams could quit the City over taxes and regulations
Goldman Sachs is reviewing its London operation, a move that could eventually see entire departments shifted overseas
The bank is understood to be considering its options in the wake of the UK's windfall tax on bankers' bonuses, a new 50pc top income tax rate, and increased banking regulations.
The world's most powerful investment bank has asked an internal team to examine various strategies, including whole divisions being uprooted and taken offshore.
The review, which is in its very early stages, could also recommend making no changes to the status quo. The review is a blow to government efforts to sustain the Square Mile as a global financial centre.
It is also sensitive for the bank, which has been keen to highlight the amount of tax it pays in the UK to deflect criticism of its massive earnings.
Alongside its results last year Goldman highlighted that it paid £1.1bn in UK corporation tax, the biggest contribution from the UK financial sector. Its 5,000 London employees had also contributed hundreds of millions of pounds in income tax.
Observers suggest that among the operations which will be reviewed is Goldman's proprietary trading arm, which is estimated to make up to 90pc of the bank's profits. Sources say Geneva would be a likely destination for the "prop desk", where tax on performance fees can be negotiated with the Swiss government.
More here.
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That's "brilliant" strategy - kill off your own homegrown industries run by people who have home here in exchange of highly mobile not-producing-anything folk that can quit very quickly.
Goldman Sachs is reviewing its London operation, a move that could eventually see entire departments shifted overseas
The bank is understood to be considering its options in the wake of the UK's windfall tax on bankers' bonuses, a new 50pc top income tax rate, and increased banking regulations.
The world's most powerful investment bank has asked an internal team to examine various strategies, including whole divisions being uprooted and taken offshore.
The review, which is in its very early stages, could also recommend making no changes to the status quo. The review is a blow to government efforts to sustain the Square Mile as a global financial centre.
It is also sensitive for the bank, which has been keen to highlight the amount of tax it pays in the UK to deflect criticism of its massive earnings.
Alongside its results last year Goldman highlighted that it paid £1.1bn in UK corporation tax, the biggest contribution from the UK financial sector. Its 5,000 London employees had also contributed hundreds of millions of pounds in income tax.
Observers suggest that among the operations which will be reviewed is Goldman's proprietary trading arm, which is estimated to make up to 90pc of the bank's profits. Sources say Geneva would be a likely destination for the "prop desk", where tax on performance fees can be negotiated with the Swiss government.
More here.
---------
That's "brilliant" strategy - kill off your own homegrown industries run by people who have home here in exchange of highly mobile not-producing-anything folk that can quit very quickly.
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