'financial arms races'

[BrilloPad]

Action Needed To Tackle City Excesses, Bank of England Official Warns

"returns on equity and executive compensation, rose dramatically in the run-up to the 2008 financial crisis. As banks tried to keep up with their competitors by growing their balance sheets, returns on equity and executive pay spiralled. Generally, the bigger a firm's market value, the bigger the bonus."

Of course it might help if the banks were not a protected species and market forces applied.

[AtW]

If banks pay bonuses that are huge this means they earn too much and BoE can charge them higher interest on money they lend from it.

[BrilloPad]

If banks pay bonuses that are huge this means they earn too much and BoE can charge them higher interest on money they lend from it.

But wouyld that work for non UK banks?

[AtW]

But wouyld that work for non UK banks?

Bonuses for non-UK based banks is the matter for taxpayers/shareholders in respective countries.

[BrilloPad]

Bonuses for non-UK based banks is the matter for taxpayers/shareholders in respective countries.

Exactly. But London has the important IB part of most banks.

[AtW]

Exactly. But London has the important IB part of most banks.

Then those IB parts should be subject to UK laws in all respects including banking.

Why do you think they have staff here? Maybe that's why -

"Meanwhile there is also some unattractive publicity for the London law firm Linklaters and for the now controversial light-touch regulatory culture that existed in the UK till recently.

The examiner says that the so-called "Repo 105" programme that allowed Lehman to hide that $50bn of assets was not permitted by any US law firm.

So Lehman obtained an "opinion letter" from Linklaters in London that said the relevant deals were permissible under English law - and the relevant transactions that hid the assets were then conducted through Lehman's London operations."

Source: BBC - Peston's Picks: Lehman: How $50bn was buried in London

If costs of staff in London is cheaper for banks to operate then they'd be even more inclined to setup here.

[SupremeSpod]

Then those IB parts should be subject to UK laws in all respects including banking.

Why do you think they have staff here? Maybe that's why -

"Meanwhile there is also some unattractive publicity for the London law firm Linklaters and for the now controversial light-touch regulatory culture that existed in the UK till recently.

The examiner says that the so-called "Repo 105" programme that allowed Lehman to hide that $50bn of assets was not permitted by any US law firm.

So Lehman obtained an "opinion letter" from Linklaters in London that said the relevant deals were permissible under English law - and the relevant transactions that hid the assets were then conducted through Lehman's London operations."

Source: BBC - Peston's Picks: Lehman: How $50bn was buried in London

If costs of staff in London is cheaper for banks to operate then they'd be even more inclined to setup here.

Stick to your search engine.

This sh!t's too complicated for you.

[AtW]

Stick to your search engine.

This sh!t's too complicated for you.

WHS

I'll see you when I buy a house...