Following on from my last post - I was talking about this whole banking crisis thing again with a friend today. I began to wonder out loud..what if 'The City' decamped to say Paris, Frankfurt or maybe Switzerland? A lot of bankers threaten to move (if their salaries and bonuses are reduced) don't they? I might be wrong but the City of London wins out due to:
1. Possibly the UK's business tax regime.
2. Time zone (that's why it is situated where it is after all) - due to Greenwich Mean Time
3. Our linguistic skills (again predominance in English).
4. Our tolerance to cultures coming here to live.
5. London - world class for culture, sport etc.
6. Flight connections worldwide.
7. Interconnectedness across the financial sector i.e.:
managers/ hedge funds and so forth.
8. Sheer number of foreign banks which have a base here.
9. It's worth bearing in mind that it is the whole package which draws international companies and banks to London.
10. Experience of staff of banks and financial companies based in London and across the UK and world.
11. It just takes one bank to make the first step on bonuses and pay
then they'll all do it. I cannot understand it. After all - they would
be able to slash their wage bill massively. Surely that would help their
profits and re-capitalise the banks and their balance sheets. It
is a "no brainer". (To use a term that used to bounce around in
meetings.) It'll gain massive backing from 'the people' en masse all
around the whole world.
12. Banks becoming ethical and lending again to small/medium/big
business will help kick start economies....and will allow them to regain
13. Availability of office space.
14. There are lots and lots of silly, little things which are keeping the banks here. Maybe it would be difficult for them to move....always worth a thought....
Or am I being naive? I'd like to believe not!!! :-) Be pleased to hear your thoughts! Many thanks and hope you are keeping well. Hadriana :-)
P.S.: Been having a further think and know that the Swedes resolved their banking crisis. Sounds as if we can apply their solution to us and the rest of the world. Take a look!: