As tax jumps on U.K. banks become increasingly more painful, HSBC (NYSE:HSBC) and Standard Chartered (OTCPK:SCBFF) are weighing the possibility of calling it quits on their London home. The banks, which make most of their profits in Asia, face a combined $2B bill this year under the annual U.K. bank tax, up from $1.5B last year and almost double what they paid in 2013. HSBC would probably move back to Hong Kong, where it moved from in 1993, while StanChart would likely relocate to Singapore, where most of its businesses are already run. However, the price-tag of moving could also be heavy. Analysts estimate the cost to be between $1.5B-$2.5B per bank.
courtesy of seekingalpha.com
What would the impact of this be? How many ways can you think this would ripple through the economy - and where does this fit with the Laffer Curve? A great little snippet for an essay on deficit reduction...
Blog resource for 6th Form, with contributions from teachers and students.
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