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Boris in new attacks on City critics
Katharine Barney, Evening Standard24 Sep 2008
Boris Johnson today renewed his attack on Labour "neo-socialists" for criticising the City.
The Mayor's comments follow Gordon Brown's conference speech which attacked the Tories over financial regulation.
It also comes after Mr Johnson's own remarks in his weekly Telegraph column in support of bankers. Today he said London could gain a transatlantic economic advantage if ministers resisted pressure to overregulate the City.
Mr Johnson said: "My own hunch is if we get this right and keep our nerve, we have the opportunity to come through this in good shape and perhaps in even better shape than New York.
"I'm very much concerned when I read attacks on greed and spivs and speculation, attacks by neo-socialists on the culture of bonuses.
"Of course there has been greed ... but [the City] is a great British industry and the last thing we want to do now is throw the baby out with the bathwater with some form of excessive regulation."
Mr Johnson said any short-term risk of going against public opinion was outweighed by the long-term benefits.
Reader views (40)
FYI - In 1998 the City Square mile contributed 88 Billion to the purse strings of the government, I don't think anyone will be pushing too hard. Oh and if it did come down to it, we would have more money for lawyers and court cases than the government ever would. EG IR35?, remember that, I believe the government have spent more money than it has collected from that tax of high earning IT staff...what a farce.
- Gc, London, UK., 25/09/2008 12:12
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DC of London. You must be incredibly naive if you think that top earners pay tax at forty percent. Most of them have very clever tax advisers who can exploit the loopholes that are always there to encourage good behavior. That's why one year bonuses were paid in fine wines and also why the Channel Islands run a number of tax-avoidance scams. An alternative is to pay bonuses in shares which must be held for ten years before being cashed in. That would ensure that risky dealing would be suffered by those responsible.
- Damien Day, Chiswick, 25/09/2008 11:50
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The city employs some 340,000 people, do you think each and everyone of them is a millionaire? Of course not, a tiny percentage earn the millions the popular press would have us believe is hanging on trees waiting to be grabbed by "greedy bankers".
Does Joe public fully understand the amount of tax take the government gets from the square mile, and how it subsidises the rest of the country?
And on the subject of pay vs "joe public", why is nobody criticising the pay of footballers, lawyers, accountants etc.....all of whom can make millions a year too!
- Damian, London, 25/09/2008 09:13
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if this continues all the wealthy people will be driven out of this country and then what...? first non-dom tax, then another upper tax band, then cut bonuses...what would actually be the attraction of living and working in London/UK when these people have SO many other choices and opportunities (hint NOT the wonderful free health service which any person employed in the City pays for but doesn't use because they have private insurance)?! Hong Kong, Singapore, Dubai, Monaco etc... pity that the general public can't think straight for the envy!
- Mt, London, 25/09/2008 09:10
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The people who voted against Boris are never going to accept anything he says or does, so what's the point of making a big fuss because they are doing what they are going to do regardless of the topic at hand; making the same claims they made before he was elected; whinging, for the most part, because their man got booted out?
Instead of presumption of failure based upon ideological arguments, how about waiting to see if the stuff he was actually elected for works out, huh? You know - democracy and all that stuff. The guy who gets elected gets to strut his stuff to the presumed benefit of ALL - its in the rules somewhere, I believe. Unlike the current failure of a national government, he hasn't had the opportunity to prove himself yet.
- Rogan, DFW TX, 24/09/2008 20:00
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James Hennessey,
Grow up! Those "Spivs" you mention probably pay your overtime. Your prejudice against anyone who works very hard to make money and therefore employ others is palpable. If money-makers don't create wealth, then how on earth would companies be able to employ other people or give money to the voluntary sector. You mention that "Spivs" have their noses in the trough. However, I think I'm generous in assuming that you very much sound like the runt of the litter.
- Fiona, The City of London, 24/09/2008 19:19
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If City wants to have its vast profits and keep 'red tape' and regulation at bay then fine, but they should also be prepared to fold by market forces as well and the public should not be expected to bail the banks out, no matter who old and prestigious they are. Personally, they're a bunch of crooks who grizzle and moan about the nanny state yet come running to it (re: us, tax payers) when they mess things up.
Let them all sink.
- Dan T, London, 24/09/2008 17:45
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Fortunately we have someone running London who understands the critical importance of maintaining London's position as world financial centre. GOOD ON YOU BORIS.
- Evan H, London, 24/09/2008 17:39
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"If you take away the City of London"
Bondy - what are you talking about? No one is proposing taking away the City of London - what people have a right to talk about is preventing the worst excesses of some city organisations - to prevent normal people (those not on millions of £s per year - plus bonuses) having their jobs and homes and lives destroyed - just so some greedy fool can be even richer than they already are.
Take the City away - why are you thinking in 2 dimensional cliches...do you work for Boris Johnson?
Isn't it amazing- capitalists and free marketeers were always banging on on about how the free, unregulated market could provide for society - but these people because by their own greed and sloppy work go running to the government for public money to save their sorry backsides when it all goes wrong.
If it wasn't to destructive for normal people that some of these organisations went to the wall - it would be justice for these people and organisations to suffer their fate they brought upon themselves.
The markets cant cant be trusted - some things are far to important to leave to these selfish and greedy people.
- Greg, London, 24/09/2008 17:34
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The FSA (Calamity McCarthy), along with M. King, G. Brown and A. Darling made an absolute fiasco of Northern Rock and they are now going to cause a debacle by postponing short-selling. The traders did nothing illegal but there are many in the City and the country (a large number of whom are licensed by the FSA) who deliberately arranged and knowingly bought and sold toxic debt and mortgages. Nothing has been said about pursuing the true culprits for the losses.
- John, London England, 24/09/2008 16:50
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I earn over £100K and my wife makes another 50k, we have two kids and we are really struggling to keep afloat - my IO mortgage is 3k a month, my nanny 1K and then living costs wipe us out each month. Dont tax me anymore or I'm off. You really need to address what and who are the wealthy if you want to supertax people.
- Cb, Fulham, 24/09/2008 16:45
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David,London uk - It takes a spiv to know a spiv
Incredible insight, Dave.
- James Hennessy, London England, 24/09/2008 16:43
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Damien Day of Chiswick. Some simple maths for you here - a man earning £40,000 pays around £10,000 tax or so and a man earning £400,000 pays around £150,000 tax. That is 15 times more tax than the £40k man. Where is the fairness in him paying tax at a higher percentage than the £40k man other than to satisfy bitter Socialists. He already contributes 15 time more than the 'ordinary decent working man earning £40k' and you want him to pay even more? Wise up!
- Dc, London, 24/09/2008 16:38
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Iain (of Covent Garden) I have not missed the irony of the situation. However, the failure to regulate effectively (the FSA is about as useful as the CSA) is equally to blame for the present hiatus. You cannot rely at all on government agencies.
But the real problem is that circa 20% of our tax revenue comes from the City and the UK would be dead without it. If the govt dumbclucks get stuck in there we will lose out to places like Singapore and Dubai. The spivs and Co will up sticks and leave taking their profits with them.
- David, East Grinstead, 24/09/2008 16:38
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If you take away the City of London, remember its not just the stockmarket. Its Insurance, shipping etcetc you take away the heart of a great trading nation. I dont know if its 10% or 20% of our GNP but this is often business between counter parties who have nothing to do with its shores. Its because of the entreprenurial spirit of people in this country who will take one persons risk from someone who doesnt want it themselves. To think that everyone in the City is greedy is nonsense. Losses are made year in year out. Tamper with this square mile and the UK is headed for a 3rd world country.
- Bondy, london, 24/09/2008 16:24
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David, East Grinstead - On balance I agree with Boris Johnson
Quite frankly David, both you and Boris come across as being extremely unbalanced.
- James Hennessy, london england, 24/09/2008 15:53
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Fiona, have you been asleep asleep or shopping fir the last 6 months?
- Iain, Covent Garden, 24/09/2008 15:24
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Boris earns the same hourly rate for his Telegraph column as the Selfish and Greedy Bankers do. Of course he is on their side. The best way to deal with them is to tax salaries over 100K at sixty percent and close all tax loopholes so they pay more tax than the cleaners and office workers in the Banks, who they profess to be concerned about.
- Damien Day, Chiswick, 24/09/2008 15:09
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Interesting comment Fiona..
so we allow Banks to regulate themselves and therefore be allowed to go under, and have no capital adequacy requirements...which in terms of retail banks means taking their clients money with them. This is the extreme liberal economic viewpoint, the result of which would be a worldwide depression...some may arge that would be a neccessary evolutionary change, but very high risk...there seems to be limited support for thsi approach in either the US or UK at the moment
- Martin_Clerkenwell, london, 24/09/2008 14:25
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Fiona, London
How about taking a trip back to the real world? Look what happened when the city was running itself. Spivs, Chavs and all the other greedy pigs with their snouts in the trough got us into this mess. They should all be shot.
- James Hennessy, london england, 24/09/2008 14:14
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The city has brought the country to its knees thanks to its financial activities. They cannot be trusted with anything least of all money. God knows what will happen to pension funds once more of this corruption comes out.
- Darren, London, 24/09/2008 14:11
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Is Boris seriously saying that no new regulations or FSA oversight is needed? That everything is healthly in our financial markets?
- Astonished, London, 24/09/2008 13:45
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This man is becoming a real burden for his spin-doctor masters. He has already lost six very senior staff members and there are indications that more want to jump ship. This is exactly what we all feared, no I voted for Ken and would have him back any day.
- Richard, London, England, 24/09/2008 13:41
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Takes a Spiv to know a Spiv!
- David, London UK, 24/09/2008 13:26
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True colours. Protect your own - that's the Tory way, whatever face is presented (mock green, mock chummy, mock caring). And that's entitely the platform votes chose when they put him in power. Self interests to be protected.
Which is why it's no surprise to see Johnson sticking up for his mates. The kind of people a million miles removed from credit crunch-suffering families. Get close to the elite and you may get a taste of the spilled champagne - sorry sparkling wine, poor them.
- Carlos M, London, 24/09/2008 13:24
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Good stuff Boris. The Labour lemmings have truly gone on to another level of self-denial if they think London wouldn't become a ghost-town without the financial sector.
- St, London, 24/09/2008 13:06
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Each time the government has regulated anything they've just created a mess and then taxed us to pay for it. Manufacturing is virtually nil and many companies have been taxed out of existence. Others have moved abroad.
The city creates wealth and jobs. The government creates nothing and filches through our wallets at every given opportunity. It robs pensioners, stealth-taxes us and slaps fines on our dustbins.
So what if guys in the city earn massive bonuses - they work hard for it. Most of their tax is spent by the government on Nanny State schemes like rewarding chavs for lying on their sofas all day watching Big Brother.
Let the city run itself!
- Fiona, London, 24/09/2008 12:49
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Could it be Boris has money managed by the very hedge funds he seeks to defend?
- Steve, London, 24/09/2008 12:48
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Boris should be careful of the company he keeps...
The FBI is investigating four major US financial institutions whose collapse helped trigger worldwide stock market chaos..
It is looking at potential fraud by mortgage finance giants Fannie Mae and Freddie Mac, and insurer American International Group.
- Steve, London, 24/09/2008 12:46
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Boris is right. The whole wealth of the nation depends on the financial wizards in the city.
They deserve bigger bonuses and should have their tax reduced too.
This would actually increase the revenue generated from the city because lower tax means business grows bigger and employs more people. With more people employed it is easier to fund the NHS.
The Neo-Socialists - with their daft ideas, would force everyone into poverty.
- Rod Gordon, London, 24/09/2008 12:31
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Come on Boris , these bankers have made enough money out of us, Now that some of them have screwed up, the taxpayer is coughing up. Yes we want the city to make money but we dont want them robbing us at the same time.
- Mr S.Port, London, 24/09/2008 12:22
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Closing Heathrow, a new airport on an island in the Thames estuary, blanket approval of the city's excesses, failure to understand that intelligent regulation is essential for the survival of the city and of London.
What's the problem with his brains?
- Giorgio, London, 24/09/2008 12:12
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This is the Boris I feared I was voting for when I reluctantly ticked his name in the pollbooth. The US is waking up to the problems of the free-reign it has allowed on Wall Street. The "spivs" he is defending have been happily gambling away the money of the companies they work for, without the slightest concern for the livelihoods of employees likely to lose their jobs when it all came crashing down. Dry your tears - you can rest assured most spivs will have big enough investments to live on comfortably, as opposed to the secretaries and support staff who bite their nails, hoping for their last pay-cheque.
- David, North London, 24/09/2008 12:10
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True Colours, True Blue. Look after your rich mates.
- Mick, London, England, 24/09/2008 11:56
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Whilst I don't agree with attacking bankers simply out of envy or spite, I think that David has rather missed the whole irony of the current situation. Now that the banking system has effectively been privatised, those who have always championed "dog eat dog", "survival of the fittest" etc. have now been reduced to going cap in hand to the state for support. So the only difference these days between the much vilified "single mothers" and bankers is that the former's benefits don't quite stretch to Bentleys or Chelsea homes.
- Iain, Covent Garden, 24/09/2008 11:40
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Many rich business people and bankers use tax evasion tactics such as off shore accounts which, though legal are highly devisive so I don't believe we should have an overly reverential attitude towards the tax contributions of some of these people.
- Juan-T-A-Win, LONDON, 24/09/2008 11:33
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He would say that, wouldn't he.
- Alex, london, 24/09/2008 11:13
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The man is absolutely barking.
- Steve, London, 24/09/2008 11:13
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as the proposals being discussed are far less onerous that those put forward by the US - including McCain suggesting a salary cap on senior execs of rescued banks at $400K (same as the US president) he is clearly defining McCain as a neo socialist.
The idea is that the FSA should assess bonus schemes as part of the overall risk profile of an institution and if they believe the scheme places a higher risk on the bank, they will have to have higher level of reserves to reflect this....seems reasonable to me
- Martin_Clerkenwell, london, 24/09/2008 11:01
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On balance I agree with Boris Johnson.
This Labour Government actually sponges off the City for Tax Revenue - to support abject failures such as Northern Rock in the Labour heartlands - and of course to subsidise Scotland where Labour are dead scared of the SNP so they use money from Southern England in a vain attempt to buy Scottish votes.
Without City tax revenues the UK would be bankrupt.
- David, East Grinstead, 24/09/2008 10:41
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