Financial Transaction tax needed to stop obscene bank profits

 24 November 2011

“The ridiculously high profits announced by ANZ shows we are overdue in imposing a financial transaction tax”, according to Laurence Boomert, New Economics Party candidate for Wellington Central.

ANZ announced record profits recently despite difficult economic conditions.

“Every bank these days deals in derivatives and these trades are high volume and fast turnover. A small financial transaction tax should be imposed on every transaction,” said Boomert.

“ANZ’s website shows exotic financial instruments like spot minors and forward majors but few people understands their complications”, said Boomert.  “Banks are gamblers these days not innocent intermediaries between lender and borrower, especially since the removal of the firewalls that protected the savings and loans sides of their business from their rampant speculations.”

The Pacific Financial Derivatives page on Facebook tells you that retail Forex accounts can now be opened with a large or small deposit and leverage of 1 to 100 is allowed in most cases. “If this isn’t gambling then I don’t know what is”, said Boomert.

“The problem is that as banks indulge in reckless speculation and suck out their undeserved profits the real economy of production and labour is endangered”

For further comment phone Laurence Boomert 027 258 8807 E: laurenceboomert@xtra.co.nz