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After calamitous financial events, it is common for all sorts of silly, anti-competitive financial policies to sprout up from the populist-infused aftermath. Such was the case with the introduction of Sarbanes-Oxley in the early decade: instead of keeping accounting standards more tightly policed, the regulation had the deeper effect of sending a whole generation of Chinese enterprises eastward in their search for capital in order to avoid burdensome U.S. regulations.

Britain today is experiencing something of a Sarbanes-Oxley moment. Earlier on, Chancellor Alistair Darling announced that banks will be forced to pay a one-time levy of 50 percent on bonuses higher than £25,000, or $40,800. In addition, top-rate income tax on earnings of more £150,000 will rise to 50 percent, he said:

“There is no bank that has not benefited either directly or indirectly from this help,” said Darling, who ruled out a tax on banks’ profits. “I’m giving them a choice. They can use their profits to build up their capital base, but if they insist on paying substantial rewards, I’m determined to claw money back for the taxpayer.”

At first glance, it might seem like a fair justification — and even a good thing — that banks are being encouraged to hoard more cash to plough into their operations, rather than to pay out telephone-number-sized salaries.

However, that’s only until you consider that a financial services firm is not a value-chain business, but rather a value-shop business. In the case of a value chain, such as Wal-Mart Stores (WMT), for example, the business needs continued re-investment in technological infrastructure to grow. That is different for a value shop such as a financial services firm, whose main re-investable infrastructure is pretty much only its employee base.

It is for this reason that Morgan Stanley (MS) is shopping around for more than 400 sales and trading employees right now, JPMorgan (JPM) is hiring 1,200 retail bankers, and Japanese Nomura (NMR) is looking to swell its U.S. personnel roster by 1,600 additional hires by March next year. The bulk of those employees will be paid a basic salaries plus company- and individual-based performance bonuses. The reason is because their work directly affects the bottom line of the bank.

In other words, punishing banks for their willingness to pay market rates for their employees is exactly the same as getting tough on Costco (COST) for sourcing cheap goods to stack its shelves with. By imposing a scary windfall tax on banks’ principle area of growth and investment, Darling is merely dissuading firms from expanding operations in London, and instead, incentivizing them to expand elsewhere in Europe.

EXCERPT:

The generation of Caribbeans who transformed Britain economically, politically and culturally after the war are nearing the end of their working lives... [M]any are now fulfilling a long-deferred dream to return to the countries from which they came.

Again, some pretty smart, attention-seeking marketing. Won't be touching the stuff myself, mind.

Oh, and B-san - stay away :-)

The UK government on Tuesday doubled its bet on bailing out Britain’s two part-nationalised banks - RBS and Lloyds -  adding up to £37bn of new money to the same sum it injected a year ago. The latest bail-out makes RBS by far the world’s biggest government rescue, taking as much as £53.5bn of state money, compared with the $45bn (£27.4bn) the US put into Citigroup. Lloyds, in contrast, sought to emphasise its commercial viability, launching a £13.5bn rights issue to which the government will contribute £5.9bn in line with its 43.5% stake.

Coca-Cola Enterprises (NYSE: CCE) today announced that Edward J. Lopez has been named Chief Diversity Officer, effective November 1. Mr. Lopez will oversee the company’s global diversity initiatives, and will report to Pam Kimmet, Senior Vice President, Human Resources. Previously, he served as Vice President of Public Affairs and Communications for the company.

“With more than 20 years of experience in the legal, public affairs and community relations arenas, Ed will build upon the work Coca-Cola Enterprises has done to ensure diversity remains an integral part of our culture, our approach with our customers, and our Corporate Responsibility and Sustainability commitments,” said John F. Brock, Chairman and Chief Executive Officer. “Through his leadership and expertise, Ed will drive our global diversity strategy to ensure CCE continues to attract, develop and retain a highly talented and diverse workforce that is representative of the communities we serve.”

“From talent acquisition efforts to engaging a wide range of customers, suppliers and community organizations, CCE continues to incorporate diversity and inclusion into our ongoing, daily business operations,” said Ms. Kimmet. “I look forward to the insights Ed will bring to the established infrastructure we have in place at CCE.”

Before joining CCE in 2007, Mr. Lopez served on the New Mexico Governor’s cabinet as Cabinet Secretary and Superintendent of Regulation and Licensing. From 2000 to 2004, he was President of the National Hispanic Cultural Center Foundation’s Board of Trustees. As President and a member of the board, Mr. Lopez led the foundation in identifying, preserving and enhancing Hispanic arts and humanities. He is also active in the community, currently serving on the board for the National Hispanic Child and Family Development Institute. Prior to these roles, he spent 15 years with the Bell Telephone System as corporate counsel and then vice president/general manager of operations in New Mexico.

“Our employees are the foundation of our business,” said Mr. Lopez. “To help us deliver on our vision of being the best beverage sales and customer service company, it is imperative that we provide our employees with a work environment that continues to allow them to achieve their full potential.”

Mr. Lopez received his Bachelor of Arts degree from Michigan State University in East Lansing, and his Juris Doctor from the University of New Mexico in Albuquerque.

Coca-Cola Enterprises is the world’s largest marketer, distributor, and producer of bottle and can liquid nonalcoholic refreshment. CCE sells approximately 80 percent of The Coca-Cola Company’s bottle and can volume in North America and is the sole licensed bottler for products of The Coca-Cola Company in Belgium, continental France, Great Britain, Luxembourg, Monaco, and the Netherlands. For more information about our Company, please visit our website at www.cokecce.com, and for more information about Corporate Responsibility and Sustainability at our Company, please visit http://crs.cokecce.com. 

"Racism and xenophobia have once again emerged in British politics, driven by the very difficult economic situation in which Britain is now mired.

Sir Ronald Sanders is a business executive and former Caribbean diplomat who publishes widely on small states in the global community. Reponses to: www.sirronaldsanders.com

The grim reality of racial unease in Britain and its possible consequences were highlighted by an invitation by the British Broadcasting Corporation (BBC) to a convicted racist and leader of the far-right British National Party (BNP), Nick Griffin, to appear on one its prestigious television programmes, “Question Time”. Griffin appeared alongside representatives of British mainstream political parties, including the Justice Minister Jack Straw.

Straw argued that he appeared on the programme to confront Griffin and not to leave “an empty chair”.

Outrage at the BBC invitation to Griffin has been widespread and the BBC’s Director-General, Mark Thompson, has been heavily criticised for the decision which he defends by saying that the BBC will not cave into “censorship”.

As the programme was about to be recorded on Thursday October 22, hundreds of anti-fascist demonstrators crowded the BBC’s television studios to protest Griffin’s appearance...."