jackovesk
5th November 2011, 03:18
French President Nicolas Sarkozy cops blast over global tax
November 05, 2011
http://resources2.news.com.au/images/2011/11/04/1226186/226670-feast-before-the-fast.jpg
AUSTRALIA'S peak banking group has launched a broadside at French President Nicolas Sarkozy, attacking his push for a global tax on financial transactions.
The tax would punish Australian banks for the sins of their European counterparts, according to the Australian Bankers' Association.
At the G20 summit in Cannes yesterday, Mr Sarkozy said that such a tax was "technically possible, financially indispensable and morally unarguable", and claimed he had garnered support from Brazil and Argentina.
France and Germany have been pushing for a small tax on financial transactions as a mechanism forcing markets to help pay for government efforts to rescue debt-ridden economies.
The Australian Bankers' Association chief Steven Munchenberg said European powers were intent on making their banks pay for bailout packages.
But they knew they could not penalise their banks without the same penalties applying to the rest of the world's banks, Mr Munchenberg said.
"They want to punish their banks but don't want to be at a competitive disadvantage," he said.
"It didn't happen in Canada, it didn't happen in Australia, it didn't happen in Asia.
"It happened because of failures of regulators in Europe and the US."
The renewed tax push comes at a time when Australian banks, following a golden run, face their steepest challenges for many years.
Analysts are questioning how banks will tap wholesale funding - still a key source of funds despite Australia's growing deposit rate - at a reasonable cost as the market again becomes volatile.
And consumers and businesses continue to be wary of debt while the world economy wrestles with the European debt crises.
Southern Cross Equities analyst TS Lim said there were a string of concerns casting a pall over the sector.
Among them, market trepidation triggered by Europe's debt crisis, wholesale funding costs and a review into credit ratings by global ratings agencies were key issues, he said.
"I think the banks have factored in a one-notch downgrading (to their credit ratings)," Mr Lim said.
"But at the end of the day they are not too concerned as it will be right across the board. The only concern is if one of the major banks is hit harder than other three."
Mr Lim said all banks would look to rein in costs as a first step to lifting profits in an environment of static credit growth.
Nomura analyst Victor German said bank shares were still a strong investment, but conditions for the banks would become more difficult.
http://www.heraldsun.com.au/business/banks-get-a-feast-before-the-fast/story-fn7j19iv-1226186211496
PS - Don't think for a 'Second' this is a 'Hit Piece' on Sarkozy & The European Central Banks..!
This article is just another way for the 'Bought & Paid 4' MSM to soften the 'Sheeple' and prepare them for what is to come..!
November 05, 2011
http://resources2.news.com.au/images/2011/11/04/1226186/226670-feast-before-the-fast.jpg
AUSTRALIA'S peak banking group has launched a broadside at French President Nicolas Sarkozy, attacking his push for a global tax on financial transactions.
The tax would punish Australian banks for the sins of their European counterparts, according to the Australian Bankers' Association.
At the G20 summit in Cannes yesterday, Mr Sarkozy said that such a tax was "technically possible, financially indispensable and morally unarguable", and claimed he had garnered support from Brazil and Argentina.
France and Germany have been pushing for a small tax on financial transactions as a mechanism forcing markets to help pay for government efforts to rescue debt-ridden economies.
The Australian Bankers' Association chief Steven Munchenberg said European powers were intent on making their banks pay for bailout packages.
But they knew they could not penalise their banks without the same penalties applying to the rest of the world's banks, Mr Munchenberg said.
"They want to punish their banks but don't want to be at a competitive disadvantage," he said.
"It didn't happen in Canada, it didn't happen in Australia, it didn't happen in Asia.
"It happened because of failures of regulators in Europe and the US."
The renewed tax push comes at a time when Australian banks, following a golden run, face their steepest challenges for many years.
Analysts are questioning how banks will tap wholesale funding - still a key source of funds despite Australia's growing deposit rate - at a reasonable cost as the market again becomes volatile.
And consumers and businesses continue to be wary of debt while the world economy wrestles with the European debt crises.
Southern Cross Equities analyst TS Lim said there were a string of concerns casting a pall over the sector.
Among them, market trepidation triggered by Europe's debt crisis, wholesale funding costs and a review into credit ratings by global ratings agencies were key issues, he said.
"I think the banks have factored in a one-notch downgrading (to their credit ratings)," Mr Lim said.
"But at the end of the day they are not too concerned as it will be right across the board. The only concern is if one of the major banks is hit harder than other three."
Mr Lim said all banks would look to rein in costs as a first step to lifting profits in an environment of static credit growth.
Nomura analyst Victor German said bank shares were still a strong investment, but conditions for the banks would become more difficult.
http://www.heraldsun.com.au/business/banks-get-a-feast-before-the-fast/story-fn7j19iv-1226186211496
PS - Don't think for a 'Second' this is a 'Hit Piece' on Sarkozy & The European Central Banks..!
This article is just another way for the 'Bought & Paid 4' MSM to soften the 'Sheeple' and prepare them for what is to come..!