Dec. 21 (Bloomberg) -- Geneva, touted as a haven for London bankers facing heavier U.K. taxes, may lure fewer than predicted thanks to a housing shortage, crowded schools and a 44 percent income-tax rate. Barclays Plc President Robert Diamond this month joined a chorus of financial leaders in arguing that the U.K.'s 50 percent tax on bonuses would drive bankers away from London. The Swiss Private Bankers Association said the "arbitrary" tax will boost the allure of Geneva, whose bankers oversee about 10 percent of the world's foreign-held private wealth. "It's a joke, it's lobbying," said Tim Dawson, an analyst at Geneva-based brokerage Helvea AG. "People are dreaming if they think the London investment banking world is going to move. There is more office space in Canary Wharf than in the whole of Switzerland," he said, referring to London's second financial district.
Barclays Plc President Robert Diamond this month joined a chorus of financial leaders in arguing that the U.K.'s 50 percent tax on bonuses would drive bankers away from London. The Swiss Private Bankers Association said the "arbitrary" tax will boost the allure of Geneva, whose bankers oversee about 10 percent of the world's foreign-held private wealth.
"It's a joke, it's lobbying," said Tim Dawson, an analyst at Geneva-based brokerage Helvea AG. "People are dreaming if they think the London investment banking world is going to move. There is more office space in Canary Wharf than in the whole of Switzerland," he said, referring to London's second financial district.
