Obama to Propose Fee on Bailed Out Banks
(CBS/iStockPhoto)
The fee of 15 basis points (15/100ths of 1 percent) of bank assets (excluding insured deposits and common stock holdings) would only apply to firms with $50 billion in assets or more. No small or community banks would have to pay the fee. The fee, if made into policy, is expected to remain in effect for a minimum of 10 years.
Officials expect about 50 banks and other top financial institutions would be hit by the fees. The only company a senior official mentioned that would definitely be charged is the American International Group Inc. (A.I.G.)
The White House estimates that TARP losses will amount to $117-billion dollars. The fees would raise about $90-billion over 10 years. The fees could be extended if all losses are not covered.
A senior official says any of the institutions hit by the fees would put themselves at a competitive disadvantage if they tried to pass on the cost of the fees to their customers.
The auto companies that received bailouts would not be subject to the fees, nor would Fannie Mae or Freddie Mac.
A senior official says the goal of the fees is to insure that top financial institutions that were major contributors to the financial crisis and also major beneficiaries of the bailout, take responsibility to ensure that all the costs of federal assistance are not added to the deficit or passed on to future generations as part of the National Debt.
The White House is expected to issue a Fact Sheet on the proposal later Thursday morning.
(CBS)
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CBS News: 12/25/2009:
"Fannie's CEO, Michael Williams, and Freddie CEO Charles "Ed" Haldeman Jr. each will receive $900,000 in salary, $3.1 million in deferred payments next year and another $2 million if they meet certain performance goals, according to filings with the Securities and Exchange Commission."
"The Treasury Department said Thursday it removed the $400 billion financial cap on the money it will provide to keep the companies afloat. Already, taxpayers have shelled out $111 billion to the pair, and a senior Treasury official said losses are not expected to exceed the government's estimate this summer of $170 billion over 10 years."
So who is costing the taxpayers money - the banks? This corrupt President is taxing those who did not support him politically, and giving a pass to politically friendly groups (Auto industry - union support, and government run loan agencies). It's OK for Fannie to give out bonuses and rob the taxpayers of the nation, but when the banks pay the loans back to the people - they are evil for giving out bonuses? Americans have to pay additional fees (taxes) if they purchase a premium heath care plan for their families, except those who belong to a union (who supports the President politically)?
I have never seen a President so blatantly corrupt. This behavior borders on being immoral.
Fannie and Freddie - no mention by this administration as being just as evil as the banks. Both Fannie and Freddie contributed monumentally to the subprime housing debacle.
What did Fannie and Freddie do to help cause the mortgage meltdown?
"You can keep your smaller government - I prefer to stay healthy."
That's YOUR problem, not your neighbors.
I didn't ask for anything from my neighbors, moron.
I asked for my government to do IT'S JOB!! The job they USED TO DO until Bush gutted the budgets of all of those regulatory agencies!!
Simple: Fannie and Freedie are in a round-a-bout way the government entity to purchase loans (very little independence..they try to act like they are). The car companies are unionized. Obama loves unions.
chevyhotrod thinks that Fannie and Freddie "make loans" and dictate policy to the individual banks, telling them who they MUST loan money to, whether they can afford it or not.
You're wasting your breath on this fool.
Hey Starving,
What do you think is going to happen with Healthcare cost if the Democrats pass this massive bill that puts all kinds of "fees" on medical devices and insurance plans?
The same thing, they will pass their cost onto the consumer which will continue to drive the price of healthcare up even more, not down.
I see you are starting to catch on, good for you, we are so proud of you.
What "fees" are you referring to?
The one that Glen Beck is fantasizing about, but doesn't really exist?
Only you would be stupid enough to believe that premiums are going to rise, because Glen Beck is delusional.
But then again, you're clueless as to how the mortgage meltdown occurred too.
If ignorance is bliss, at least you're very, very, very happy.
Very good point....however, with Liberal democrats at the helm, there will be NO downsizing in sight, matter of fact, the Government is the solution to all of their problems, with a new social program as the remedy.....Congress never has to show 'performance' for their pay increases, yet banks, etc. are all being scrutinized over 'merit pay' and limits to their incomes....yet Barney Fwrank, Pelosi, Reid never have to show performance for their pay increases that they voted themselves
We saw the government downsized under Bush, and how did that work out?
No oversight for the financial sector, causing the great economic meltdown.
Reduced oversight for imported garbage from China, and we got poisoned toothpaste, dog food, and dangerous drywall.
Reduced oversight for the food and beverage industries, and we got record rates of salmonella, E coli, and numerous other poisonings.
Just to name a few.
You can keep your smaller government - I prefer to stay healthy.
That's YOUR problem, not your neighbors.
FINALLY we have an Administration that represnts US!!!!!
The banks aren't lending because businesses and individuals are afraid of what other burdens Obama is going to heap on them next - high energy taxes, higher health care costs and forced enrolement into expensive insurance plans, increased income taxes, inflation, etc...
This is stupid.
The banks are just going to pass the fees on to us, WITH a premium attached.
___________________
Isn't it funny how you attack the bank for 'passing on the fee' yet you have no problem with the person/admin creating the fee in the first place.....if Obama wasn't throwing fees around, then nothing would get passed to you.
Did you think the banks were just going to lose revenue/profit, because Obama said so ? of course not, all tax increases (or fees) are always passed to the consumer/customer, whether it's business taxes, sales taxes, you name it