The bank regulations being proposed by lefties like gordon broan and bo sound pretty horrible. Happily HM Minister of Finance has defeated one of the worst ideas, a bailout fund tax. Now if he would only cut spending more, institute a flat tax and balance the budget, things would be perfect.
Finance Minister Jim Flaherty seems to have killed the IMF’s threatened global bank tax, at least for the moment. Good for him. Also, kudos to the Big Six Canadian Banks for being bold enough to criticize other regulatory horrors being discussed at this weekend’s G20 meetings in Washington.
Mr. Flaherty had spoken out strongly against a global levy to create a bailout fund. “I’m not going to impose a tax on our banks that performed well during the financial crisis,” he said earlier this week. “It seems to me a very odd thing to do — to punish our banks that got the job done adequately.”
But it’s not at all odd from the perspective of those who seek any excuse to extend regulatory control. This group conspicuously includes the current U.S. administration — as typified by President Obama’s bank-bashing speech this week in New York — and many European countries.