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Lord Turner from the Financial Services Authority in the United Kingdom is speaking out bravely against the London banks. He says the UK’s grossly oversized banking sector has little social utility. The constant swaps and trading of money amount to nothing for society. Lord Turner is courageously suggesting reducing the banking sector in London by introducing a Tobin tax to discourage short term currency speculation. The Tobin tax is a small tax applied to financial currency transactions. Lord Turner says this would be part of a strategy including requiring banks to hold a higher level of capital to eliminate excessive profits. This would be an exceptional outcome from UNI’s point of view however it would need to be implemented at a global level to make it work.



The United Kingdom’s Finance industry is opposed to the suggestion of higher capital requirements and a Tobin tax. The arguments put forward by the industry are that it would take business away from the UK and that if would lead to job loss. Introducing a Tobin tax and higher capital requirement on a global scale would discredit both of these arguments. The difficulty in achieving such an outcome globally, means you need to battle with arguably the most powerful industry which has an enormous influence over media, business and government’s. UNI Finance Global Union supports progressive financial reform such as a Tobin tax.



The international union movement will be taking their message to the G20 in Pittsburgh next month. We are asking them to be courageous and implement some serious financial reform for the benefit of all society and not just one powerful industry. ‘Business as usual’ in the finance industry is not an acceptable way to proceed forward for our global economy. The Tobin tax could be a success and a solution to reducing the financial industry from having grown “beyond a socially reasonable size” claims Lord Turner. However the easing of the financial crisis is breeding complacency. How tough regulators are willing to act is yet to be decided.