Banks getting stroppier

“Bob Diamond: No apologies. No restraint. No shame,” reads the outraged headline in The Independent. On 11 January, appearing before a Treasury Select Committee of British MPs who questioned him on the £7 billion (€8.4 billion) of bonuses that will be distributed in the City this year, the CEO of Barclays argued that “the time for bankers to show any remorse for the failings that dragged Britain into the worst recession since the Wall Street crash is ‘over’.”

In its editorial, the London daily wonders how Diamond, who himself is likely to receive a bonus cheque of £8.5 millions (€9.6 millions euros) can “expect to defend bankers' bonuses with a name that is so resonant of wealth and opulence? A change is clearly in order. We suggest: Bob Diamante. They are cheap and create a little sparkle: just what many people need in an age of austerity."

Meanwhile on the continental, German banks are preparing an offensive against a hike in the bank levy introduced earlier this year. As the Financial Times Deutschland headline explains “Berlin is planning to hustle the banks for more.” The levy will be used to finance a fund for financial institutions in difficulty, which should no longer be a burden on the taxpayer. Until now the levy was limited to 15% of annual profits, but the government, which “has suddenly decided that the banks can dig a little deeper,” wants to raise this ceiling. “The move has been unanimously condemned by the industry,” remarks FTD, adding that “the ongoing introduction of proposals for a bigger bank tax, a ceiling on bonuses and a tax on financial transactions, will be an incentive for banks to announce losses.”