France and Britain find unity in banker-bashing
But there's no sign of the US following suit, despite polls showing anger at bank execs

A free daily digest of the biggest news stories of the day - and the best features from our website
Thank you for signing up to TheWeek. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.
France is set to follow Britain's lead in levying a 50 per cent tax on bankers' bonuses over €27,000. Chancellor Angela Merkel has also voiced her support for the measures, though it appears German bankers are likely to forestall any action by reforming rules on pay and bonuses themselves.
But crucially, neither the US nor Switzerland are showing any inclination to follow suit. The Swiss federal finance ministrycleverly ducked the issue, saying taxation in the decentralised country was largely up to Switzerland's 26 cantons.
In the US, talk of pay reform has died down after the initial anger at AIG and Goldman pay-outs. With the powerful financial services lobby committed against any measures to restrict compensation, there is little political will to challenge the status quo.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"You'll see politicians talk about it, but they won't actually do it," Paul Miller, managing director of mid-size investment bank FBR Capital Markets in Washington, explained in the New York Times.
But after weeks of evidently strained relations between Britain and France, Christine Lagarde, the French finance minister, did not begrudge Britain's lead in curbing banker pay - though noted it was a French idea. So there.
"We have been advocating this for a long time, and we are delighted to see that Gordon Brown is taking that stand," Mme. Lagarde said. "The president," she added, "thinks he is brave to take on the City."
Still, there are signs that the banks are going to act pre-emptively rather than allow themselves to be set on by politicians and treasury officials. Goldman Sachs announced its 30 top executives will get year-end bonuses in stock they can't sell for five years. Under the Goldman plan, the share allocations can be repossessed if the firm finds the recipient failed to gauge, analyse or warn of risk.
How effective the Goldman measure will be in curbing public anger at the "vampire squid" and its $16.7 billion 2009 bonus pool, remains to be seen. "They're trying to take the heat off the very large amounts of compensation they're going to pay," said compensation consultant Alan Johnson, who noted the value of Goldman bonuses was not being reduced, just carefully deferred.
While British and French bankers may legitimately feel picked on, American bankers may not be out of the woods. Two-thirds of Americans say they have an unfavourable view of financial executives and more than half say big financial companies are only out to enrich themselves, according to a Bloomberg poll.
With ratings like that, it may not be long before ambitious legislators make a move.
Continue reading for free
We hope you're enjoying The Week's refreshingly open-minded journalism.
Subscribed to The Week? Register your account with the same email as your subscription.
Sign up to our 10 Things You Need to Know Today newsletter
A free daily digest of the biggest news stories of the day - and the best features from our website
-
Net zero: the looming 'energy gap'
Talking point UK has made strides in decarbonising UK's electricity supply but government has few plans to expand capacity
By The Week Staff Published
-
Britain's gambling habit: are we dicing with serious damage?
The Explainer The UK's betting industry has become a multibillion-pound juggernaut
By The Week Staff Published
-
The Week Unwrapped: Russian rights, British class and world expos
Podcast Will Russia rejoin the UN Human Rights Council? Are we all now working class? And could the world call a halt to expos?
By The Week Staff Published
-
Inflation vs. deflation: which is worse for national economies?
Today's Big Question Lower prices may be good news for households but prolonged deflation is ‘terrible for the economy’
By The Week Staff Published
-
Inflation crisis: is a recession the only answer?
Talking Point Experts suggest sharp slowdown may be necessary to avoid economic spiral
By The Week Staff Published
-
Food price caps: a return to 1970s living in UK?
Talking Point Government plan labelled ‘hare-brained’ as industry bosses warn it could lead to shortages, push up inflation and cut competition
By The Week Staff Published
-
UK avoids recession - but will anyone notice?
Today's Big Question Think tank says 2023 ‘will feel like a recession for many, regardless of the data’
By Chas Newkey-Burden Published
-
Recession in doubt after unexpected growth in UK economy
Speed Read Service industry provides welcome boost but experts warn that economy is ‘at best stagnating’
By Chas Newkey-Burden Published
-
Recession or recovery: the economic outlook for 2023
Talking Point The IMF has warned that a recession will hit a ‘third of the world this year’
By The Week Staff Published
-
Back to the future: can Gordon Brown solve UK’s levelling-up woes?
Today's Big Question Long-awaited report on constitutional reform sets out Labour’s plan for more devolved power
By The Week Staff Published
-
Does the UK need higher levels of immigration to thrive?
feature Keir Starmer says UK must wean itself off its economic dependence on migrants despite labour shortages
By The Week Staff Published