Hmmm...lots of comment on the Merlin talks and Bank taxes today. Ed BAlls made a fine point about Public Sector workers having their pay published and not bankers; OK one set are tax paid servants, but in the politics of envy world perhaps it would be easier if we just published what everyone earned. Then perhaps people would get seriously angry with the Hedge Funds who make the Bankers seem like paupers.
On a trading note, I see the Banks can still pay bonus's in shares, which is dilutive to their current share holders and also that the new tax is on them as institutions, not on the individuals. So the banks will swallow hte tax phit and by default, there will be less funds for distribution to shareholders. I already see Banks as a masssively unattractive equity position, this has made it worse.
I do wonder how with these types of measures the Government can hope to sell its stakes at breakeven or a profit. Perhaps the more sensible thing would be to let them make hay now and whack 'em once you have stuffed some Soveriegn Wealth Funds with the Equity; this is what the City tries to do with IPO's after all.