Bank tax

[30ashopper]

President Obama plans to call on Thursday for taxing about 50 big banks and major financial institutions for at least the next decade to recoup all taxpayer losses from the bailout of Wall Street.

The tax on banks, insurance companies and brokerages with more than $50 billion in assets would start after June 30 and seek to collect $90 billion over 10 years, according to a senior administration official who briefed reporters late Wednesday.

Obama’s Bank Tax Seeks $90 Billion to Repay Bailout - NYTimes.com

Interesting mixture of policy here. AIG, Freddie, Fannie, GM, and Chrysler would be excluded. TARP funds borrowed were paid back with interest but that's irrelivant, and there's no mention of all the crappy MBS sold that now sits on the FEDs balance sh*t, er sheet.

Overall I'd support something like this as long as it's fair, hits those who truely cost taxpayers money. Sounds though like there are a lot of politics involved, which is unfortunate.

 

[scooterbug44]

I never understood why if we paid "X" dollars to bailout a bank, we do not get "X" or "X plus interest" back from them.

I think the ones who ran up the tab should be the ones who pay it. Why should OTHER banks pay for THEIR greed and incompetance?

And why would we give any exemptions? Especially to companies like AIG? :angry:

 

[30ashopper]

washingtonpost.com

WaPo reports AIG would not be excluded.

 

[30ashopper]

I never understood why if we paid "X" dollars to bailout a bank, we do not get "X" or "X plus interest" back from them.

I think the ones who ran up the tab should be the ones who pay it. Why should OTHER banks pay for THEIR greed and incompetance?

And why would we give any exemptions? Especially to companies like AIG? :angry:

Apparently that's exactly how it worked, a majority of the TARP losses came from GM and Chrysler. The banks that paid back their loans would have to foot the automaker's bill because, "they caused the crisis." Complete B.S., typical of washington too, they can't do anything without chosing a side.

 

[30ashopper]

WSJ has more -

Obama Unveils Proposal on Bank Taxes - WSJ.com

 

[scooterbug44]

Why can't we just eventually get our money back from GM & Chrysler?

I do think the banks caused the crisis - and haven't learned a damn thing or changed their ways BTW - but shouldn't have to pay for others.

 

[Jfish]

Passing the bucks

I am no fan of banks, but this looks like a form of class envy being used to distract attention from the dismal failure of current economic policies. Much of the banks' TARP funds have been repaid with interest. I would much rather see a serious (and transparent) effort to reduce government spending.

 

[Eileen West]

I am no fan of banks, but this looks like a form of class envy being used to distract attention from the dismal failure of current economic policies. Much of the banks' TARP funds have been repaid with interest. I would much rather see a serious (and transparent) effort to reduce government spending.

Much of the TARP funds have been repaid with interest? Please tell me where I can see those numbers. I know some has been paid back but "much" seems a bit...much. How much? 80% 50%?

 

[BeachSiO2]

I don't have the links, but I clearly remember reading how there were a handful of "good" banks that didn't need money but were required to take TARP funding to provide cover for those banks that were "bad" banks and needed the bailout. The thought was that if the public knew which were good and which were bad that there might be a run on the bad banks leading to further declines.

Then, there was the issue of how quickly each bank was able to pay back the money. An analysis of all the banks assets were reviewed and then a number were allowed to pay back immediately (mostly the good banks to start with) and then the other banks were put on a plan that required them to meet criteria before they were allowed to pay the money bank. In other words, the good banks gave the money back as quick as they were allowed.

So, in reading a recent article not posted it appears that this tax will primarily hit the 50 largest financial institutions and no auto companies. Some of these groups never even took the money to begin with, and others that never wanted it. That doesn't seem right.

 

[scooterbug44]

It is all clear as mud, but one thing I am reading is that the companies who HAVEN'T paid back the money are some of the same ones being exempted.

Free ride x2 IMO! :angry: