FINANCIAL SERVICES
George Osborne warns banks about “huge bonuses”
Chancellor George Osborne has warned banks that they could face additional taxes if they do not restrain bonus payments.
He told the Conservative conference on 4 October 2010: "I want to see genuine talent rewarded. But let me make this clear today: we will not allow money to flow unimpeded out of those banks into huge bonuses, if that means money is not flowing out in credit to the small businesses who did nothing to cause this crash and suffered most in it”.
--> Read Chancellor George Osborne’s speech on the Conservative party web site: www.conservatives.com/News/Speeches/2010/10/George_Osborne_Our_tough_but_fair_approach_to_welfare.aspx.
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Speaking on the fringes of the International Monetary Fund (IMF) conference in Washington a few days later, the Chancellor again appeared to threaten the banks with a new tax on bonuses.
According to the Daily Telegraph newspaper, George Osborne said: "Banks would do well to pay close attention to what I said [at the Tory conference]. We are very clear that they have to get credit flowing to small and mid-sized businesses".
--> “George Osborne warns banks of new taxes”, by Philip Aldrick, telegraph.co.uk, 9 October 2010:
www.telegraph.co.uk/finance/newsbysector/banksandfinance/8051814/George-Osborne-warns-banks-of-new-taxes.html.