When Britain announced their populist tax on Bank employee bonuses of 50% on all bonuses over 25,000 pounds, paid for by the bank, I am sure many Brits (and Americans, too) felt (perhaps smugly?) righteous. This law applies across the board... not just to banks that took bailout money, but every bank. Anyone care to guess the effect?
Royal Bank of Scotland, coincidentally now owned primarily by the British Gov, saw its stock price immediately tank by 10%, or $2.8 billion. http://www.google.com/finance?client=ob&q=NYSE:RBS
Why? Perhaps because its investors understand that the bank is either going to
1) have to pay bonuses anyway, and be socked with a 50% penalty relative to its global peers in order to stay competitive, or
2) lose its rainmakers and management to non-British banks.
In any case, British pols lost $3 billion, paid for by British voters. Had they been management, they would be fired immediately
Since politicians of all stripes are peculiarly immune to accountability and responsibility, at least we in the US, as weakened as we are today, may be able to at least outcompete the Brits, who have, in their parliament today, an amazing ball in chain in terms of their parliamentary representatives that outdoes ours in sheer incompetence. The Clouseau of governments...