IMF chief attacks Alastair Darling on new bank tax

11 December 2009

John Lipsky, the managing director of the International Monetary Fund (IMF), has attacked the introduction of a 50 per cent levy on bankers' bonuses by UK chancellor Alistair Darling.

In a speech in New York, Mr Lipsky said that IMF would not be considering introducing a similar policy.

He described the British government's plans as backward-looking and an overly hopeful attempt to recoup tax.

Much of the global public anger against the banking sector has been centered on the cost of bailouts to taxpayers but Mr Lipsky said that he saw things in a different light, reports Bloomberg.

"If public expenditures to stabilize the financial sector also served to avoid losses to the general public, should the total cost be borne by the financial sector alone?" he said.

Last month, Mr Lipsky stated the IMF was considering the possibility of introducing a tax on banks' financial transactions as a way of recouping money owed to the taxpayer from banking bailouts.

By Claire Archer

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development