Britain announced plans Wednesday to impose a one-time tax of 50% on bankers' bonuses in a move that is sure to inflame the controversy surrounding resurgent banking bonuses on both sides of the Atlantic.
The British chancellor, Alistair Darling, presented the idea in front of a rowdy Parliament, saying the ban would only apply to those receiving bonuses of more than $40,000 U.S. dollars.
The Treasury estimates that the measure — which comes into immediate effect and runs until April 5 next year — will affect 20,000 bankers. It's estimated that 5,000 bankers earn more than one million pounds sterling, or $1.6 million. In a surprise, the government said the new levy will be paid by banks rather than individual bankers.
After a decade under the Time-Warner umbrella, AOL Inc. will once again stand on its own when the company spins out from its big media parent this week.
The new independent shares of AOL will begin trading Thursday. Onlookers are waiting to see if investors, who receive their allotment of stock on Wednesday, will stick with the company or dump their shares on fears about AOL's chances as an independent firm.
And, securities markets in Dubai fell sharply for a third session on Wednesday, as investors continued to sell shares on worries over the uncertainty around Dubai World's debt woes.
A big issue: it's unclear if Nakheel PJSC, the Dubai-owned developer whose parent is seeking to delay debt payments, will meet the Dec. 14 deadline to pay a $4 billion Islamic bond. Reports have said the company may offer investors of the Islamic bond, known as a sukuk, an 80 percent redemption, but rumors are rampant the pay out could be much lower.
Other big decliners were Emaar, a government-related entity in property development, and the Dubai-based builder Arabtec, both down 9.9%.
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