One of Britain's largest and top-ranked financers has warned that chances are that London might soon lose ground as a major financial center to Asian rivals like Hong Kong, Singapore and Shanghai, despite the regulators’ controversial reaction to the banking crisis that has plagued the country.
Inspite London's hostile reaction to the new taxes like the bonus tax and the 50% higher income tax rate, Stephen Green, Chairman of HSBC, told the CBI's "Future of Financial Services" survey, "I don't believe London's critical mass has been seriously undermined by recent events".
Most of the other experts interviewed in the report, however, claimed that the new taxes are marring the country's economy and will end up damaging it much more than anticipated.
Lord Levene, Chairman of Lloyd of London, has warned against the "politically motivated changes to the system".
CBI's report has revealed that British financial services will most probably be "undermined" by the uncertainty that has been looking large with regards to the new regulations, instead of aftermath of the global financial meltdown. The CBI report included views from as many as 20 key financial industry figures.