Global bank levy gains support
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The proposal to introduce a global levy on financial institutions to help bail out banks on the brink of collapse is receiving growing support.
The International Monetary Fund has also backed the idea, of creating a bank wind-down fund, saying it is “practical”.
At the World Economic Forum in Davos there has been increasing industry support for the levy as an alternative to “Tobin Tax” which would apply a levy to financial transactions.
Deutsche Bank chief executive Josef Ackermann also gave his support to the idea of a European fund for this purpose in an interview with the Financial Times.
He said: “To help solve the too-big-to-fail problem I’m advocating a European rescue and resolution fund for banks.”
He said this would have to be funded to a “large degree” by the industry.
Barclays president Bob Diamond has also spoken out in favour of the proposal, saying “I think every G20 country would like to have an insurance scheme that would help cover the cost of any future bank failure”.
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