G20 leaders to discuss bank tax

(Reuters): Finance ministers and central bankers from the G20 group of countries meet in Busan, Korea on June 4-5 to discuss progress in implementing their pledges to make the world’s financial system safer. Leaders have agreed that banks should be made to pay for bailing out the sector in a future crisis so they can no longer believe they are "too big to fail" or that taxpayers will always be there to rescue them. The International Monetary Fund has proposed two new taxes on banks. The financial stability contribution (FSC) linked to a resolution mechanism to pay for the fiscal cost of any future government support and a financial activities tax (FAT) levied on the profits of financial institutions.