BusinessWeek: JPMorgan Assails U.K. tax, Sparks Canary Wharf Doubt

BusinessWeek: JPMorgan Assails U.K. tax, Sparks Canary Wharf Doubt

December 29 2009

JPMorgan Chase & Co., Chief Executive James Dimon, whose bank had promised to build a European headquarters in London, told U.K. Chancellor of the Exchequer Alistair Darling a 50 percent tax on bonuses would unfairly penalize the U.S. lender, a person close to the firm said.

Financial firms are threatening to leave the U.K. because they say increased taxes and regulation make London less attractive.  Shifting business centers elsewhere is “one of the sticks they’ll use to try and fight this legislation, but in the end how realistic is it? said Joe Sorrentino, managing director at executive compensation consultant Steven Hall & Partners specializing in financial services.  “This is a people buiness.  How do you get your talent, if they’re U.K. based, to move to other countries?”