Obama propses "Financial Crisis Responsibility Fee" to 50 companies

Discussion in 'Wall St. News' started by ASusilovic, Jan 14, 2010.

  1. WASHINGTON (MarketWatch) -- President Barack Obama will propose a special 10-year fee on large financial companies to repay taxpayers for the "extraordinary" assistance they got to keep the economy from collapsing in late 2008, a senior administration official said Wednesday.

    Obama is expected to announce his proposal Thursday morning.

    The assessment on excess liabilities at big firms is designed to raise about $90 billion over 10 years. It would remain in place for at least 10 years, or until all losses from the Troubled Asset Relief Program were repaid.

    Most of the largest financial companies have repaid their TARP funds, with interest. Some of the TARP funds, however, may never be repaid, budget analysts believe.

    Paying the special fee is "the least they can do," the administration official said, after Washington rescued these companies from the brink of disaster.

    Although the biggest firms have now recovered and are profitable enough to pay staggering levels of bonuses to their employees, taxpayers are still suffering from high unemployment and deep economic distress, the official said.

    The stated goal of the "Financial Crisis Responsibility Fee" is to make sure the taxpayers don't have to pay a penny to bail out the banks that nearly brought down the economy. The TARP legislation passed in October 2008 includes a provision allowing the government to be repaid in full.

    The TARP law gives the president until 2013 to come up with a repayment plan, but Obama decided not to wait.

    With tough congressional elections coming up and populist anger at the bailouts still at a boil, Obama wants it to be clear which side he's on. He doesn't want to be seen as a patsy for the Wall Street firms that profited immensely from Washington's iron-clad guarantees and cheap money.
    Fifty companies

    The special assessment would apply to about 50 companies with assets more than $50 billion -- including banks, bank holding companies, thrifts, insurance companies, and broker-dealers. The fee would not apply to hedge funds or mutual funds

  2. So 120 billion divided by 10 years divided by 50 companies translates into "fee expenses" of 240 million for each, right ?
  3. Lucrum


    Obama proposes "Financial Crisis Responsibility Fee" to 50 companies
    Didn't they used to call fees like that - TAXES?

    Any way I have my own proposal.

    A Fiscal Responsibility Crisis Fee charged to all 535 members of congress every year they fail to pass a balanced budget.
  4. And handcuffs for every Union, Trial Lawyer, AMA, NRA, or other lobbyist who wanders around DC trying to water down or gerrymander legislation to fit their special interests.
  5. Mnphats


    Sadly this is the American way. Special interests dictate bills.
  6. Mnphats


    Sorry duplicate post
  7. Obama aims to recover 'every single dime' with fee
  8. Illum


    Those who did not take, should not pay. But w/e
  9. Brilliant, a tax to pay back tax payers. Who do you think will pay this? It will end in 10 years? Yeah, right.
  10. Even GE which did not take TARP has to pay.

    It looks like a lot of companies will pay the price for the losers.
    #10     Jan 14, 2010