City & Business:Banking on Inertia
Hosking, Patrick, The Independent (London, England)
THE CITY doesn't think much of Labour's new plans to crack down on the high-street banks. Ignorance and poor communication may be half the problem. Labour hadn't done its homework properly on the present banking law. It had to shelve one of its pr oposals on the grounds that it had already happened.
The City for its part seems to have misinterpreted what Labour is proposing. Bank shares took a pounding and TSB's chairman, Sir Nicholas Goodison, furiously attacked the idea of a windfall profits tax despite the fact that Labour is not proposing any such thing.
As we report on page 1, Alistair Darling comes as close as a politician ever can to ruling out a windfall tax of the kind introduced by the Conservatives in 1981. He recognises that banks are not the super-profitable creatures of popular myth.
Measured by average return on capital over the entire economic cycle they probably achieve something like a 12 per cent return. Industries such as pharmaceuticals, household products, retailing, food manufacturing …
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Publication information: Article title: City & Business:Banking on Inertia. Contributors: Hosking, Patrick - Author. Newspaper title: The Independent (London, England). Publication date: January 15, 1996. Page number: 2. © 2009 The Independent - London. Provided by ProQuest LLC. All Rights Reserved.
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