My first reaction was that it's all a bit too late. Why did they have to wait so long to come to such a position? Then again, raising four times the amount does have its benefits during these tough times. It's obvious the banks want to prevent any precedent with their pay being legislated, so why not use the leverage today and take care of some leftover business?
Bankers in the US continue to get away with doing as they please including not even showing for a meeting with the President. Like most other political debates in the US, the White House has failed to capitalize and strike hard when the leverage existed. Until someone in the US is willing to act tough, everyone will walk all over them, including the banks. If pushing the bankers to the brink is what it takes to get them to come to their senses, push them, knock them over until they scream "uncle". Asking nicely and throwing out baskets of bon bons is not a strategy that is likely to work with bankers.
Some of the most senior bankers in Britain are planning to convince the Treasury to drop the new 50% tax on bonuses by dangling the prospect of a combined contribution to the exchequer of £2bn.
The promise of the boost to Britain's depleted coffers has been made in recent days and is almost four times the £550m Alistair Darling has said he intends to raise through his payroll tax on bonuses.
The Chancellor has been met with anger in the City since he announced the one-off tax in his pre-budget report last week and been warned of a mass exodus of high-flying bankers to countries with a less punitive tax regime.
