Taxing the banks in Europe and the United States may cause a double-dip recession because there will not be enough money to finance the recovery, Robert Sloan, author of "Don't Blame the Shorts" told CNBC Thursday.
"My personal opinion is that we will (have a double dip in the US). We don't seem to understand that the money comes from the same pool. You put a tax on banks and you want them to lend," Sloan, who is also a managing partner of prime brokerage risk manager S3 Partners, said.
Banks faced public wrath all over the world in the wake of the financial meltdown that has brought on the worse post-war recession.
The UK imposed a 50 percent top rate of tax due to come into force in April, and many bankers and analysts said financials institutions will leave London, undermining the city's competitiveness on the global markets.