Author warns of FTT-caused destruction
While the UK veto on the Financial Transactions Tax is solid, an FTT could still cause significant damage to the UK financial services industry if it is introduced –as is being planned – by a group of eurozone countries, predicted John Chown in his publication 'Time to Bin the Tobin Tax'.
Chown argues that the FTT would not enhance market stability, with its burden falling not on bankers and financial traders, but on pensioners, employees and consumers.
He also states that if an FTT were to be introduced under enhanced co-operation, UK branches of French and German financial institutions could be fully liable to an FTT on all transactions.
