Free Republic

US officials refused to prosecute HSBC for money laundering in 2012 because of concerns within the Department of Justice that it would cause a "global financial disaster", a report says. A US Congressional report revealed UK officials, including Chancellor George Osborne, added to pressure by warning the US it could lead to market turmoil. The report alleges the UK "hampered" the probe and "influenced" the outcome. HSBC was accused of letting drug cartels use US banks to launder funds.

Finance Minister Wolfgang Schäuble said Wednesday he opposes a race of competitive tax cuts in Europe after Britain indicated it may slash corporate tax. “We have no intention to start some sort of ‘race to the bottom’,” said Schäuble about plans by Britain’s finance minister George Osborne to slash corporation tax to avoid a business exodus after the June 23 Brexit vote. […] “We’re not opposed to fiscal competition,” he said, but it has to be “fair”, he added. …

In the middle of this transformation is none other than Boris Johnson, the leader of the successful "Leave" campaign, who however has cause to celebrate tonight because according to the Sunday Times, the former London mayor has won the backing of a key colleague to replace David Cameron as prime minister. Justice minister Michael Gove, who together with Johnson led the "Leave" campaign, called Johnson on Saturday to say he would back him for the leadership of the ruling Conservative Party, Reuters added. The Sunday Times said interior minister Theresa May was expected to enter the leadership contest in the...

Quitting the European Union would leave households £4,300 a year worse off, George Osborne warned as he prepared to release in-depth Treasury analysis on the cost of Brexit. Britain's economy would shrink by 6% by 2030 if the country replicated Canada's trading agreement as advocated by Boris Johnson, according to the Chancellor. The 200 page Government report assessing the long term costs and benefits of EU membership and life outside shows the country would be left "permanently poorer". In an article for The Times, Mr Osborne said: "The conclusion is clear: for Britain's economy and for families, leaving the EU...

The Chancellor says income tax could rise by 8% and billions would be cut from public services if the UK votes to leave the EU... says Treasury analysis has found that UK tax receipts would be £36bn-a-year lower after 15 years... the amount the officials calculate the exchequer would lose if Britain was forced to enter a trade deal similar to that which Canada has recently negotiated. The figure is the same as eight pence in the pound added to income tax. The 'Canadian model' is the scenario that many who want to leave say would be in Britain's best...

salami

France's socialist prime minister Jean-Marc Ayrault resigned yesterday. Joined by his entire government following meltdown in local elections .. Resignation is huge blow to France's social President Francois Hollande. Last night, Hollande admitted mistakes and said priority was to cut taxes ... last night socialist President Francois Hollande – whose rule has become synonymous with a 75 per cent top rate of income tax – admitted to mistakes and said his priority was now to cut taxes. The government’s resignation is a huge blow to the president, who was elected to a five-year term in 2012 but whose first two...

... David Cameron, who once promised that if you voted blue you would go green, now appoints Owen Paterson, a man who is not just ignorant of environmental science but proud of his ignorance, as his environment secretary. George Osborne, who once promised that his Treasury would be "at the heart of this historic fight against climate change", now gives billions in tax concessions to the oil and gas industry, cuts the funds for onshore wind farms and strips the Green Investment Bank of the ability to borrow and lend All of which is a long way of saying that...

Ed Miliband is personally to blame for the crisis in Ukraine, senior Conservatives claimed last night. Allies to David Cameron and George Osborne made the extraordinary claim after Russian president Vladimir Putin authorised military action within the country. There is a "Direct link between Miliband's cynical vote against Syria motion & Russia's actions on Ukraine," Treasury minister and close aide to the chancellor, Sajid Javid tweeted, adding that this made the Labour leader "Completely unfit to lead Britain". He was joined by planning minister and close ally to the prime minister, Nick Boles who said that Miliband's "weakness" had caused...

The minimum wage is to rise by 3 percent to £6.50, adding an extra £370 a year to the pay packets of millions of workers. The inflation-busting rise is the first for five years and follows George Osborne’s call for workers to be rewarded as the economic recovery gains momentum. And the Low Pay Commission said it was just the start of a “new phase” which would take the rate to new record highs. Ministers claim the £6.31 hourly rate for adult workers has been outstripped by the rising cost of living and is now worth the same in real...

Britain told its European Union partners on Wednesday the EU’s treaties were “not fit for purpose” and there must be reform or it would quit the bloc. In the latest blast of euroskepticism from Conservatives in Britain’s coalition government, finance minister George Osborne said EU treaties had to be changed to protect member states like his own that don’t use the euro. The comments, made at a conference in London on reform of the 28-nation EU, are unlikely to be embraced by integrationists in Brussels, who want Britain to remain in the bloc but have become irritated by its demands...

The president, it seems, committed a minor gaffe during this week's G-8 meetings in Northern Ireland. According to the Financial Times, the stumble came during a discussion of tax avoidance issues, when Barack Obama thrice interrupted the British chancellor of the exchequer in order to say he agreed with "Jeffrey." The chancellor's name is George Osborne. Obama later apologized, saying, "I'm sorry, man. I must have confused you with my favorite R&B singer." The U.S. leader was referring to Jeffrey Osborne, the soulful crooner responsible for "On the Wings of Love." But is Osborne really the favorite that Obama claims?...

Forcing more spending cuts on the military would be dangerous and disruptive and would damage the country’s ability to win wars, the head of the Army warns. Gen. Sir Peter Wall warned that further savings would place the Army’s future plans in jeopardy and seriously damage its “professional competence” in some areas. … George Osborne, the Chancellor, has said he wants to find £11.5 billion ($18.1 billion) of savings from Whitehall departments, and the Ministry of Defense is expected to be hit hard. The Army is already being reduced from 102,000 to 82,000 personnel after the defense budget was cut in...

Boris Johnson has condemned the government for urging eurozone countries to form closer economic links as he demanded a referendum on Britain’s relationship with the European Union. The Chancellor and Prime Minister believe it is essential that the 17 eurozone countries move towards closer union of their banking and fiscal policies. However, the Mayor of London said the Government was backing an “intellectually dishonest” and “anti-democratic” approach. …

The United States is now, officially, the worst place to do business in the developed world. On Sunday, Japan lowered its corporate tax rate in the hopes of luring business to its shores, handing the title of highest tax rate to the Land of the Free. The market reaction on Monday will tell whether money will begin flowing away from us and toward the more business-friendly Asian country. Japan’s combined corporate tax rate went down from 39.8 percent to 36.8 percent on its way to 34.5 percent within a few years. The U.S. federal rate is 35 percent and the...

While the Obama administration has frankly admitted the scale of America's financial problems, the British people are not being told the truth, says George Osborne. It is a tale of two cities. I have left behind a London stuck in a wasted year as a tired and embittered government desperately limps towards its electoral fate; and I have come to a Washington DC buzzing with the energy, ideas and enthusiasm of a new administration. I am here to talk to the senior members of the Obama economic team. When I congratulated one of them on surviving the first 100 days,...