British banks 'should not face Tobin tax'

13 December 2011

Implementing a tax on financial transactions in Britain would not be a positive step in terms of the country's wider economic recovery.

That is according to Ken Costa, the former chairman of investment bank Lazard, who has insisted the adoption of the Europe-wide Tobin tax in the UK's banking industry would not work.

Speaking in an interview with the Independent, Mr Costa - who is now working on rebuilding the relationship between the City of London and the general public following the recession - explained this would come as a "massive cost to jobs in this country".

"It is not a tax on the banks, it will be borne by you and me and passed on, just as dealing costs are passed on to pension funds - this will be passed straight through," he added.

However, Mr Costa - also an ex-vice chairman of UBS Investment Bank - went on to say financiers must be prepared to take action to win back the trust of consumers.

By Tony Aynsley

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