The British government has slapped a new 50 percent bonus tax on the country's bankers.
The decision follows growing anger at the inability of some bank bosses to curb excessive earnings, and it will hit employees receiving $55,000 or more.
When Alistair Darling, Britain's Chancellor of the Exchequer, stood in Parliament this week, bankers knew they and their bonuses were in his sights.
"There are some banks who still believe their priority is to pay substantial bonuses," says Mr Darling.
The new tax is a one-time hit supposed to raise an estimated US$890 million, a drop in the fiscal bucket next to Britain's estimated national borrowing of US$290 billion.
"It is a visceral, vicious, spiteful act," says David Buik, markets analyst, but in terms of balancing the books and getting the UK economy, getting the show back on the road, it's a joke."
Just as in the US, Britain had to bail out British banks to the tune of US$1.3 trillion in total support.
"No politician, no government could conceivably allow bankers to haul off great big stonking sacks full of cash when they've been floated by the taxpayer," says London mayor Boris Johnson.
But the bonus claw-back hits all bankers - at all banks - whether they were kept alive by the government or not.
Investment bankers are feeling so besieged that one major bank has cancelled its holiday party and banned highly-paid employees from holding their own. The message - no conspicuous consumption here.
French president Nicolas Sarkozy says the logic of taxing bonuses is "unavoidable", and he is expected to announce his bonus tax plan soon.
But the banks may delay bonus payments until after the tax is lifted, or more acceptably, offer future benefits rather than ready cash. They have also issued a warning - keep this up, and we'll go where the welcome is warmer.
The threat, made many times before, is that bankers will flee London. Only this time, cities like Singapore are closer to the fast-growing economies of Asia and income is taxed at a low 15 percent.
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