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01-14-10, 10:00 AM #1
Obama Bank Fee to Hit 50 of the Biggest U.S. Financial Firms
an. 14 (Bloomberg) -- As many as 50 financial firms with assets greater than $50 billion each would be hit by a levy President Barack Obama will propose today to help recoup taxpayer bailout money and trim the federal budget deficit, an administration official said. The levy based on bank liabilities would be imposed starting June 30 and the administration estimates it will raise $90 billion over a minimum of 10 years, said the official, who briefed reporters on the condition of anonymity.
Obama plans to outline the proposal late this morning at the White House and a more detailed plan will be included in the budget message he’s due to send Congress next month. The announcement comes as public anger is rising over the taxpayer bailouts (This is working out so well just give em more money!) of the financial and auto industries, Wall Street bonuses and the deficit, which hit $1.4 trillion last year.
Even before it was formally released, the proposed Financial Crisis Responsibility Fee drew criticism from the industry.
“Using tax policy to punish people is a bad idea,” JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, 53, said after testifying yesterday at a hearing of the Financial Crisis Inquiry Commission in Washington. “All businesses tend to pass their costs on to customers.” (Ya think? Obama can't seriously think the majority of these businsesses will pay out of pocket does he?)
The fee targets the country’s biggest financial institutions and aims to recoup losses from the Troubled Asset Relief Program, which the Treasury Department now estimates to cost $117 billion, the administration official said.
Companies including JPMorgan, Citigroup Inc., Wells Fargo & Co., Bank of America Corp., Goldman Sachs Group Inc. and Morgan Stanley were among the biggest beneficiaries of the government’s initial purchases in October 2008 of preferred stock and warrants with money from the $700 billion TARP fund. All but Citigroup have repaid the money, according to a Treasury Department report released yesterday.
Covered institutions include bank holding companies, thrift holding companies, insurance companies with such entities and broker-dealers. More broadly, the official said that firms covered under the Federal Deposit Insurance Corp.’s temporary loan guarantee program would be subject to the fee. The Temporary Liquidity Guarantee Program was established to back senior unsecured bank debt and boost liquidity in the banking system.
Some companies that didnā€™t receive TARP funds would face the fee, the official said. The administration is using the argument that that every major financial firm in the U.S. is a beneficiary of government steps to bolster the industry.
Obama Bank Fee to Hit 50 of the Biggest U.S. Financial Firms - Yahoo! NewsDo not war for peace. If you must war, war for justice. For without justice there is no peace. -me
We are who we choose to be.
R.I.P. Arielle. 08/20/2010-09/16/2012
01-14-10, 10:04 AM #2
bout time he started working on getting our money back...
wait... won't that probably mean that the consumer's cost will go up to offset the payments the company will have to make to repay the government...
crap... why can't the little guy ever win...-=Twan007
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01-14-10, 12:06 PM #3
Most of the big banks have already paid money back, which is why he needs the levy.
He can't control them now that they have paid back the money.I'm your huckleberry...
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but every girl I found was either one way or the other...
01-14-10, 03:23 PM #4
Just another way to get their fingers into the private sector.
01-14-10, 06:56 PM #5
Nothing surprises me anymore.
What an asshole.No one has greater love than this, to lay down ones life for ones friends - John 15:13
"The Wicked Flee When No Man Pursueth: But The Righteous Are Bold As A Lion".
We lucky few, we band of brothers. For he who today sheds his blood with me shall be my brother.
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01-14-10, 07:43 PM #6
I'm sure there are members of this board a lot smarter financially than I am, but this type of this type of thing is why I hate the democtratic party or the government in general. Lets tax financially healthy companies because some of the others couldn't make it in the current economy. Then the government will then give another bailout. Sounds like a never ending cycle of "spread the wealth".
Some of the bigger companies he wants to tax had solid business practices and they stayed out of the subprime housing market or did not contribute to the current mess we are in. Lets look at Ford. They turned down the government's offer for aid and because of this they have been rewarded by the American people. Under what he wants, Ford will be taxed extra.
Wells Fargo was in a fairly strong position when this mess started. The government went to them and asked them to take the TARP money. Both the government and Wells Fargo would benefit from a stronger economy so there were benefits for taking the money. So the money was distributed and then the Feds started dictating business practices. Wells Fargo paid the money back as did all but Citigroup. Now Obama wants to tax the companies for helping the government out? WTF?
I'm not saying these companies are without their problems. I agree we as taxpayers need to be repaid, but damn, go after the companies that didn't pay the money back, or the people behind the companies that went under. Should I have to pay extra taxes because my neighbor doesn't pay his bills?
Had to vent,
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