UK banks hit with $3 bln tax; France, Germany follow

Britain slapped a 2 billion pound (Euro2.50 billion) annual tax on banks on Tuesday and Germany and France said they will follow suit, telling the industry it must pay for its part in the financial crisis. Britain's tax was less harsh than some previous estimates, however, adding to evidence that resistance from other leading economies to imposing similar levies may cap the scale of steps taken by governments.

British banking shares were down on the day but cut their losses after Osborne's speech. "This was a crisis that started in the banking sector and the failures of the banks imposed a huge cost on the rest of society," British finance minister George Osborne said.

For more: UPDATE 2-UK banks hit with $3 bln tax; France, Germany follow | Reuters