Obama plans to tax big banks
to cover losses from bailouts
Los Angeles Times | Jan. 14, 2010 | 3:01 a.m.
President Obama plans to propose today a new tax on about 50 of the nation's largest financial institutions to recoup about $100 billion in expected losses on infusions of federal bailout money. The expected proposal comes a day after the heads of four giant banks admitted making mistakes and expressed regret for the financial crisis before a special panel investigating the causes of the massive meltdown.
The new "financial crisis responsibility fee," which must be approved by Congress, would generate about $9 billion a year for at least 10 years, said a senior administration official who spoke on condition of anonymity because the plan had not been formally unveiled. The annual tax -- equal to 0.15% of a company's liabilities excluding insured deposits -- would be assessed on banks, insurance companies and other financial firms with at least $50 billion in assets.
Notably, the fee would not be assessed on automakers General Motors Co. and Chrysler Group, which have received about $64 billion in bailout money and are projected to account for a large share of the losses.
More at: LA Times
