Glory Be! Ritchie cannot even read!

So we have a new bank levy – to be charged on bank assets.

Err, no.

Plans for a global bank levy took a major step forward on Tuesday as the UK announced it would raise £2.5bn with a tax on bank balance sheets and the leaders of France and Germany called for the Group of 20 to reach international agreement on a similar tax……..The levy will have the secondary effect of encouraging banks to cut their reliance on short term funding – a major goal of global banking regulators – because wholesale funding of more than a year’s duration will be subject to a reduced rate of 0.02 percent, rising to 0.035 per cent, and tier 1 capital and retail deposits would be exempt.

We have a new bank levy – to be charged on bank liabilities.

Good grief, the man\’s an accountant and cannot even get which side of the balance sheet is which right.

2 thoughts on “Glory Be! Ritchie cannot even read!”

  1. Not that it really matters .When banks create a new sum of money they cover themselves by creating two accounts (one asset/one liability) to make it appear there is a balance.

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