British papers are replete with stories of French bankers escaping high tax rates and emigrating to the UK, and French bankers in London are praising the UK for its measured approach to taxation. However, the sense of schadenfreude may be a little premature.
However, the New Statesman points out today that Francois Hollande’s policies are popular in the UK. 56% of UK voters support a 75% top rate of income tax; 61% support a transaction tax. Needless to say, the current plan is for the UK’s top rate of income tax to fall to 45% in April 2013.
Most people in the City aren’t earning seven figures. However, many people in the City are higher than average earners. As the chart below, taken from the UK government’s document arguing the repeal of the 50p rate, shows, nearly 50% of people earning over £150k in the UK work in business services or financial intermediation.
Even if a 75% rate isn’t achieved, the sentiment is clear: the British public would like higher taxes on top earners. And those top earners are mostly in City-type jobs. French financiers may yet wonder why they left Paris.
The head of Citadel’s broker-dealer unit is to retire. This has nothing to do with Citadel losing $35m on Facebook. Before Citadel, he worked at Knight Capital, which also lost on Facebook.(FinAlternatives)
Bad news for London’s ECM bankers: 3 companies have pulled their LSE IPOs in the space of 2 weeks. But US IPOs are up 19%. (CityAm)
JPMorgan’s CIO unit employs around a dozen people who’ve made private equity investments of $1bn every year recently. (WSJ)
Directors overseeing risk at JPMorgan include: a museum director, billionaire’s grandson, CEO of a flight controls company. (Bloomberg)
Anthony Parsons, who spent a decade as chairman of UK M&A at Deutsche, is leaving. Possibly for Greenhill. (Telegraph)
Columbia university’s maths in finance programme: excellent and cheap, but the careers service is quite dreadful. (Quantnet)
Excellent Greek EU exit flowchart from Lombard Street Research. (Guardian)
Germans have a broken joy-gene and suffer pleasure-jealousy. (Spiegel)