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in 1990 I had apension pot of £200,000. If this had been left in the post office for 19 years it would have doubled. In the capable hands of the proffessionals it is barely worth £50,000 today. Is this the price of continuing high wages and bonuses in the city?

- Scott Wallis, huntingdon, england, 16/12/2009 22:30
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I propose a goodwill tax of 20% on anyone with the title of "lord"

- John Graham, london UK, 16/12/2009 21:30
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This idiot Turner will get booted out before too long. He is an utter idiot. Profits are taxed, mostly at the highest rates already, where will the taxes come from to pay for ineffective parasites like him in the future. The FSA failed to adequately regulate the banks but now want to create further havoc? Utter moron.

- James Macleod Ritchie, Oyster Bay Cove, 16/12/2009 21:30
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Actually a Tobin Tax is an old idea proposed by a Nobel nominated economist and has been widel debated by national governments. Here's why. Let's say sterling currency trading generates circa £34,000 billion a year in the UK. A Tobin Tax of 0.005% would raise in the region of £2 billion. Most of this trading is pure speculation for the in-house book anyway and not real investment to pay pensions or interest to savers. Are we saying that 0.005% is "too taxing"? Arm yourself with some facts http://en.wikipedia.org/wiki/Tobin_tax

But it's interesting to see that all these armchair critics haven't come up with anything different which would work better. Even Sarko is getting in on the act of trying to reign in the excess of the bankers.

- Cassandra, Brentwood, 16/12/2009 21:30
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Don't panic about this. It will only become Law if PM Mandelson tells his puppet OSI Brown to put it on Darling's next agenda. And I bet Madelson has some shady banking connections he wants to hide. So is he going to risk having anything leaked to the press?

- Richard Meredith, huntingdon, 16/12/2009 21:30
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Turner’s is a first class idea.

Are we going to continue to allow a comparatively few individuals who, for whatever reason, have got themselves into a unique employment position to continue to cull a huge amount of money for themselves while the majority of their working peers in more productive working environments cannot approach anything like the vast sums the leaders in financial institutions pay themselves.

The banking industry and its management have almost decimated the world’s financial system, yet they think they can get “back to the races” as though nothing has happened.

Many are lucky they are still in employment and that includes those who are not part of the governments rescue scheme but who have benefited from the “environment” created by the Government’s rescue packages and proposals.

It’s a good job this is peace time.

In all-out war, someone like Lord Beaverbrook would have sacked the lot immediately after the crash and replaced them with new individuals.

Governments, of whatever hue, need to toughen up and stop letting vested interests in the financial industry run the world for their own benefit.

It’s easy to make money from money; it’s not rocket science.

You just have to be competent and be in the right place at the right time

It’s not so easy to find a cure cancer, create and run new industries to alleviate climate change or look after the sick and the old.

Time to tax the extremely wealthy and redistribute the excess downwards

The banker’s ha

- Terry Mechan, gloucester, 16/12/2009 21:30
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Are there not already several taxes, real and stealth, brought in by Brown, on short term investments. If the government is so against this guys views, I look forward to there being removed.

Brown also launched a system to give £2bn debt relief to 3rd world nations. That money comes from taxation.

So this Tobin Tax already exists in the UK, in all but name.

- Threaded, Roskilde, Denmark, 16/12/2009 21:30
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So it is true, Gordon Brown is not responsible for any recovery, it is down to the Money Men talking the market back up to make their massive bonuses again.And here was me thinking that Darling and the Treasury were going to regulate the Banking and Financial Institutions and not let them carry on as before. I must have swallowed a Nulabour sound bite. Oh well. back to the Land of the Little People, as stated in that well known book of fiction Gullible's Travels.

- Alan, carlisle uk, 16/12/2009 21:30
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What a shocking surprise... the answer is yet another tax. This seems to be the only answer from NULabour for everything.

They did such a great job of taxing oil in the North sea so that no Oil company has invested, so now let's apply the same logic to destroy another successful industry (which has funded the NULabour experiment and remember Gordon Brown was so close to the City for this reason).

NY, Singapore, Dubai and all the other financial centres must be rubbing their hands in glee. Only this Government could be so fundamentally stupid.

- Stephen, Swindon, 16/12/2009 21:30
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Those bankers and their accountants make the most generous donations to both the big political parties. No politician, or politico's lapdog, is going to spoil those nice big earners.

- Shadowfax, Hammersmith, 16/12/2009 21:30
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"Paul H, LONDON - they bought £20 billion worth of shares at 55.5 pence. They are now trading at 56.75 pence ... er so thats a profit !!!!" Er... Wrong. try selling £20 billion worth of shares. I think you will find that's a loss!!!

- Alan, carlisle uk, 16/12/2009 21:30
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Whether you agree with this idea or not, it is wrong for any public figure to make suggestions which are impossible, and without making clear that the idea cannot be implemented. The supposed taxes to help poorer nations are opposed by those very nations because they themselves wish to compete in this market (and have increasingly done so). In addition, 'global taxation' can only be enforced at the point of a gun or the actual taking over of small nations by larger ones. Switzerland's democratic structure (cantons deciding how they want to run their affairs) includes taxation - are they to abolish this? It is irrelevant whether you support the general principle or not - it can only be done within a context of even greater control by the larger nations of the small ones.

- Damian Hockney, London, UK, 16/12/2009 21:30
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Get rid of the venture capitalists, merchant bankers, et al. Let them leave! My tax bill would be a LOT lower without 'em.

- Peter Cox, London UK, 16/12/2009 21:30
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William of London

"destroyed people's pensions and savings" - No. GB destroyed pensions with abolition of the dividend tax credit and windfall taxes.

"put the world's financial system in peril, is creating mass unemployment - The real culprit was a result of the REGULATORY FAILURE in US & UK (Govt & FSA) which created a vacuum exploited by a few individuals in some banks. Banks in all other countries are fine as they were properly regulated. See article in ES yesterday by Paul Waugh

"will require significant public expenditure cuts AND large tax rises to pay for the consequences of their errors". True but public expenditure is already at unsustainably high levels & needs to be cut because there is too much waste & too many jobs that offer no value to taxpayer. Govt. could make profit on sale of their stakes if they handle the situation properly as Swiss Govt did with UBS.

In the financial year 2007-2008, the City paid the Treasury £42bn in tax revenue which fell 21bn the following year and will probably never recover leaving a big hole to fill by a dwindling band of firms who remain (Shire etc all off to Ireland etc). The good news is this will generate a fierce public debate about Govt expenditure - how much is spent and how and where it goes.

- Mike, London, 16/12/2009 21:30
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William of London,

It was the banks and the city that bankrolled the NUlabour experiment. It is also the best opportunity this Country has of getting out of the current situation. Nobble the banks with over agressive taxes and regulation and you will guarantee that this Country will not recover. Markets correct themselves, Bureaucacies do not.

I trust the market, rather than the fool who sold our gold reserves at the worst possible value.

Competition and the market is brutal, but in the long run the fairest option.

For your information, the Credit Default Swap was a financial instrument designed to reduce the risk of defaults, much in the same way as any insurance product. Without it, we would not have had the low cost credit environment for the past 10 years. There is nothing fundamentally wrong with the Credit Default Swap, simply the risks need to be accurately calibrated (like any insurance product).

- Stephen, Swindon, 16/12/2009 21:30
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Lord Turner is right on this one. If US and UK Govts allow bankers to pick up high rewards whilst taxpayers remain liable for the risks it could all become very unpleasant next time.

- James, South East, 16/12/2009 21:30
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Once again, Boris is able to provide a soundbite for something he has no control over. By all means comment, but I'd much rather you spent your time sorting out that which you were elected to do - your transport system is now visibly falling apart at the seams. Do something about it!

- Carl, London, 16/12/2009 21:30
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Trust the Tories to stick by their religion. Defend the privateers, and the profiteers and big business and of course Johnson has to adhere to this Tory principle.
T H Leeds

- Thomas Hayes, Leeds UK, 16/12/2009 21:30
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if they want the City to be smaller then they should have let the weak banks fail

why tax a successful industry and drive it to other countries?

- Tony, Romford, 16/12/2009 21:30
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How many shares does Johnson hold in the gambling casino which is known as the "City."
T H Leeds

- Thomas Hayes, Leeds UK, 16/12/2009 21:30
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Tax them till the pips squeak - and then come back for more.

- David Holland, London UK, 16/12/2009 21:30
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Well done Paul for pointing out that the government may make a profit on the shares it owns in nationalised banks. And your point is..??

Generally if someone buys shares they do so on the understanding that they are taking a risk and may earn a profit (or suffer a loss) in return.

Lord Turner's suggestion is to be welcomed. Precisely because it would reduce the level of useless activity taking place in the city (this is not the same as saying that all activity taking place in the city is useless, just to be clear).

To all those people insisting that Lord Turner's suggestion would be a disaster (because it would destroy jobs in the city and reduce tax revenue) - not true.

Other sectors of the economy can pick up the slack and generate useful jobs (and tax revenues) instead. Great outcome.

- Michael, London, 16/12/2009 21:30
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You could not make it up. This is the clown that paid out bonuses of £23million last year to his staff at the FSA why?
This is the clown that to prop up it's accounts had to borrow £200million from the very banks it is supposed to regulate!
This is the clown that is the boss of a regulator that although has only been in existence for a few year HAS AN £89MILLION PENSION DEFICIT!

- James Town, Braintree UK, 16/12/2009 21:30
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Maybe now's the time to start taxing the treasury.!

- Mr S.Port, London, 16/12/2009 21:30
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Leaving aside this man’s track record as being an idiot, and a Labour party stooge. The reality is that Mr Brown has now to tax and tax again, and anything he can do make it sound as if he is putting right a wrong, is the nonsense he will get his puppets to spout.

There is only one thing that should happen in banking, and that is the Investment divisions should be floated of to stand and fall on their own abilities. Having a high risk sector tied into what should be a no risk area is total madness.

- Ian, Reading, England, 16/12/2009 21:30
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Turner has obviously decided that, as the FSA will likely be heavily shrunk, he has nothing to lose in advancing and agenda which is not part of his remit of the FSA. There is no reason for him to be deciding what is or is not socially responsible nor what is taxable - that's why we have elected governments rather than pompous self-inportant actors stepping outside their remit. Not to mention the fact that subsidy and hand-outs are about as counter-productive to '3rd world nations' (whomever they are) as it is possible to be. Trade makes people better off, not tax and spend.

- Peter Bench, London, 16/12/2009 21:30
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It's simple really - the clever people go into trading, less clever go into supervision. The latter get modest pay with the promise of a decent pension (jam tomorrow), the former not only get jam today, they get the sponge, icing and cherry on top too. Traditional trading such as equities, FX and bonds are straightforward and easily supervised, whereas all the structured products were surrounded by smoke and mirrors - basically, bad risks were thrown in with good, but the healthy margins went straight to the bottom line ... there's a reason why loan sharks charge massive interest rates, that's because they won't get all their loans repaid, and margins are supposed to cover the shortfall. The people who devised thses intruments were always a jump or two ahead of the regulators. Much the same happened with FX options a few years back. The guy who started them up had picked up a couple of years of massive bonuses and was long gone by the time the auditors started to realise something had gone horribly wrong!

- Paul, London, 16/12/2009 21:30
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I totally agree Boris. The one thing where the UK has any standing left in the world is London and the banking system. Paris would just love to wrest it from us. Time Turner was awarded the golden horseshoe . . . in his stupid mouth

- Albert Hall, hove england, 16/12/2009 21:30
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Boris is just upset by this because he has so much of his wealth tied up in city stocks and shares. Greed basically

- Keith Price, Luton England, 16/12/2009 21:30
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The FSA, having manifestly failed to adequately enforce its actual remit, is now choosing to play party politics by supporting Labour's, deeply unpleasant, politics of envy agenda.

Do none of these fools realise that the financial sector is highly mobile and will simply up sticks and take their jobs and investment off to an economy with sensible and fair taxation policies, which is obviously not going to be here under Labour's mismanagement of just about everything.

- Matt, London, UK, 16/12/2009 21:30
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I think I know someone who will be getting his p45 early next year; what a muppet.

- Jules_London, london, 16/12/2009 21:30
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Lord Turner is an idiot, who should know better than to come out with stupid opinions that can only hurt the industry still further. I used to be a advocate for the FSA but I am now in favour of what David Cameron intends to do to it.... abolish it !! Incidentally, to those people that do not seem to understand how the Government bailout worked ... with RBS for example.. they bought £20 billion worth of shares at 55.5 pence. They are now trading at 56.75 pence ... er so thats a profit !!!!

- Paul H, LONDON, 16/12/2009 21:30
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Lord Turner must have been battling for years with his moral conscience when he was vice chairman of Merrill Lynch and taking the not small bonus that incurred. Do you think when City trade moves to Frankfurt / Paris Lord Turner is aiming to be head of EU Finance Police and 'no more bust' Gordon as chancellor. Banks need tightening up but a smaller socially wonderful city means no big tax revenue to help pay for the increased unemployed, welfare industry and all those non jobs in the guardian.
Also from previous quotes Banks ruined pension funds?...how's Gordon not get a mention there after taking £5bill out of ours but not a penny out of his own. Also the shares the Government own are in profit but only an idiot would attempt to sell that size in one go ...eg Gordon selling all our gold and telling everyone he was going to do it pushing the price down.

- Paul, London, 16/12/2009 21:30
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His Lordship is correct on this one. It is the savings of the Western World they are gambling with, NOT THEIR OWN CAPITAL. If they win they score, if they lose, bugger us.

- Gideon From South Africa, JHB, 16/12/2009 21:30
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Oh dear. Lord Turner is another "goat" gone native and singing for his NuLabour supper. Yes banks might make excess profits but why give it to the government. Why not pay it out to the savers, the elderly, and the pensioners dependent on fixed incomes and low returns, who seem to be the only people really paying for this recession.

- Alan Carcas, Liversedge, England, 16/12/2009 21:30
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what is unforgivable is that \turner has not been stripped of his title and chucked out of office. here is the man who presided over the authority who was paid vast sums of tax payers money to police the city. They sat on their hands, pulled their massive salaries and lunched with the enemey. Now he is even allowed to make comment.

- Mark Armstrong, london. uk, 16/12/2009 21:30
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Flash Gordon has already had a go at making the City less desirable a place for the best talent to stay with his introduction of the Capital Gains Tax and new tax for non-doms. Lord Turnip is trying to hang onto his job now the Tories have said they will get rid of him once they get in power, so is coming up with ridiculous plans he thinks will hit the headlines and be populist.

Come on Flash, do us all a favour and call an election as it will kill two birds with one stone.

- James, London, Maida Vale, 16/12/2009 21:30
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So Stephen of Swindon, the banks and the City of London are successful organistations that:

- have just lost hundreds of billions of pounds (remember that the UK taxpayer support to the UK banking system amounts to > £1 trillion)

- destroyed people's pensions and savings

- put the world's financial system in peril

- is creating mass unemployment

- will require significant public expenditure cuts AND large tax rises to pay for the consequences of their errors

- failed to provide good and reasonable costing finance to any number of industries from creative to manufacturing that could flourish in the UK (after all they flourish in other advanced countries eg Germany for manufacturing)

- denudes the rest of the UK of its top graduates (why struggle to build an innovative company like Mr Dyson or go into medical research when you are showered with money like confetti in the City)

- after incurring vast losses and having to be rescued by the taxpayers around the world still pays the people who were responsible millions of pounds in bonuses.

If this is an example of success, god knows what failure must look like.

Finally if you can tell me what socially useful function a credit default swap has, apart from offering a bigger opportunity for gambling than the 3:30pm at Newmarket, then please let us know.

- William, London, 16/12/2009 21:30
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