The Robin Hood Tax is a proposal to charge investment banks a small amount for each transaction they make. It’s been getting some traction in the UK where people are annoyed about having bailed out institutions that continue to pay themselves high salaries. The real aim, though, is to slow the rate of trades and modify a computer-driven movement of money that is distorting financial markets.
In today’s BTalk Ross Buckley, professor of international financial law at the University of NSW explains how it works and the problems it seeks to resolve. The idea is gradually getting some support here in Australia. Comedian Julian Morrow and Tim Costello, CEO of World Vision, are two names behind it. In the UK celebrity endorsements include Bill Nighy, Emma Thompson, Sienna Miller and Ben Kingley.
It’s an interesting idea, but can it be unilaterally applied? Does it really need every major market to apply it for it to work?
For more watch this video Bill Nighy plays a banker, somewhat uncomfortable with the whole idea.