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Mayor threatens 'cockroach' bankers with windfall tax
Paul Waugh, Deputy Political Editor19 Oct 2009
Boris Johnson is to call in leading City bankers to warn them that they face a Tory windfall tax unless they curb this year's "ginormous" bonus payouts.
In his most vociferous attack yet, the Mayor of London compared bankers to "cockroaches" who appeared deaf and blind to public anger over their own salaries.
Mr Johnson's fury that the banks have so far failed to heed warnings about executive pay is heightened by his having gone out of his way to defend the financial services industry. His remarks came as City Minister Lord Myners made plain that big banks could face a windfall tax on profits if they fail to curb bonuses. A string of bailed-out banks are planning to reward key traders with seven-figure payouts.
Amid speculation that the Chancellor will use his pre-Budget report to impose the tax, Lord Myners today told GMTV that huge rewards to a "small number" of bankers were giving "considerable concern" over bonuses. He pledged to block banks such as RBS and Lloyds from issuing big bonuses.
Mr Johnson has banged the drum for the City, warning that the Government should be defending it from regulations that threaten to aid its foreign competitors but also choke off tax revenue that helps to fund schools and hospitals. But today he vented his anger that banks such as Goldman Sachs were carrying on business as usual, as credit to hard-pressed businesses was putting many firms on the edge of collapse.
The Standard has learned that the Mayor is to summon banking bosses to a City Hall summit to warn that they are in the "last chance saloon" on the issue of bonuses.
Mr Johnson today used his Daily Telegraph column to claim bankers were like a "cockroach which has scuttled through the nuclear blast of public disapproval".
"The bankers seem to be waltzing off with a song on their lips and their hands in their pockets - or at least their hands would be in their pockets if those pockets were not stuffed with money," he wrote. "Their interests, and the interests of the community, have been intertwined by the fact of state intervention, and they need to show they understand that."
The Mayor said shadow chancellor George Osborne dropped a windfall tax hint in his Tory conference speech, adding: "How can any politician be expected to oppose such measures when banks refuse to learn?"
Reader views (8)
Boris Banaly Blurts again.
This guy has no idea, kill the bonuses and loos teh incomebecauise we will all opt to work abroad for a few years in places like Frankfurt and Singapore. Nice holiday for us, less income for the UK.
We will all come back when we have finished earning, but not to London - Wake up Boris, try a little to understand the economic centre that you have custody over.
- James, City of London
BYE JAMES - safe journey. Last one out switch the lights off. You and the rest of the "weary bankers" won't be missed. You nearly destroyed the banking system once with your greed. How you even hope to work abroad with the level of English displayed above is another thing - good luck with that.....
- Teresa Coward, paradise france, 19/10/2009 19:35
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Well Boris - it takes one to know one...
- D.W., London, 19/10/2009 17:02
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I agree with D Dare name and shame these disgusting greedy self centered people. Boris has finally got something right.
- Mick, London, England, 19/10/2009 16:39
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Boris Banaly Blurts again.
This guy has no idea, kill the bonuses and loos teh incomebecauise we will all opt to work abroad for a few years in places like Frankfurt and Singapore. Nice holiday for us, less income for the UK.
We will all come back when we have finished earning, but not to London - Wake up Boris, try a little to understand the economic centre that you have custody over.
- James, City of London, 19/10/2009 16:20
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I always thought Boris was clever.If i were a Chairman of one of the large corporations my three year plan would be to totally move away from the UK and Boris has just enhanced that view.It is cras stupidity to remain here and allow politicians to dictate to a "Free Trading Economy".Might as well be in a full blown Dictatorship at least you know what to expect.
- Harvey N Lawrence, London UK, 19/10/2009 15:52
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Bonuses, whether large or small, are completely unjustified for ANY bank which has received government assistance. It is simply not allowable.
Why did the government not stipulate this before they bailed out the banksP?
The public cannot accept these million pound hand-outs and anyway it is not the bank's money to give.
Overnight legislation is called for her, or an enormous tax on bonuses to get back this money.
- Sidney Marks, London, UK, 19/10/2009 13:00
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Thank God Boris is now on-message.
Must have taken some stern words from Cameron over the weekend.
- Nick, London, 19/10/2009 12:35
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If even Boris is complaining about the Bankers then it must mean that he, like Osborne, has suddenly woken up to the fact that the Public is outraged. If only the Press would treat this matter with as much coverage as M.P.'s Expenses we might even get the Bankers to listen. How about some photos and names of Bankers sipping expensive champagne in lapdancing clubs?
- D Dare, Kenton England, 19/10/2009 10:29
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