IMF considers bank levy to help poor countries
by Gill Montia
Story link: IMF considers bank levy to help poor countries
The International Monetary Fund (IMF) is considering raising a levy from the world’s biggest banks and hedge funds to provide support for the poor countries of the world.
IMF managing director, Dominique Strauss-Kahn, believes it is only fair that the financial sector should pay to offset the shock waves it has caused in the global economy.
However, Mr Strauss-Kahn is reported to be opposed to a “Tobin” tax on banks’ foreign exchange trading.
This form of taxation was conceived by James Tobin in the 1970s.
The economist’s blue-print has recently been dusted-off by Financial Services Chairman Lord Turner and others, and considered as a means of limiting the City’s powers.
UK banks are already facing steep rises in regulatory charges as a result of the credit crisis and both the Government and financial sector are likely to be strongly opposed to an additional burden from the IMF.
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