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Financial Crisis Responsibility Fee


PlanMaestro
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Just surprised than nobody has commented on it:

 

The budget calls for a ten-year, $61 billion “financial crisis responsibility fee” on the largest financial companies. According to the White House document, the fee would be levied “in order to compensate the American people for the extraordinary assistance they provided to Wall Street, as well as to discourage excessive risk-taking.” (This is not a new idea, and was first introduced by the White House in January 2010 amidst the outrage over excessive bonuses on Wall Street).

 

http://www.thenation.com/blog/166217/president-obamas-new-foundation-budget

http://biggovernment.com/bshapiro/2012/02/14/obamas-cynical-revenge-on-wall-street-the-61-billion-fine/

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This I see as something else that will get passed on to customers.  I'm more excited about the Volcker Rule going into effect; it has a better chance of actually modifying the culture in banks.

 

Volcker letter to the FED and FT: http://ftalphaville.ft.com/blog/2012/02/13/879451/volcker-defends-volcker/

 

John Reed defends a tough Volcker rule: http://www.bloomberg.com/news/2012-02-14/ex-citigroup-ceo-reed-says-volcker-rule-needs-pay-curbs-severe-penalties.html

 

John Reed on Glass Steagall: http://vodpod.com/watch/16014142-moyers-company-how-big-banks-are-rewriting-the-rules-of-our-economy?u=planmaestro&c=planmaestro

 

Lobbying efforts: http://dealbook.nytimes.com/2012/02/13/at-volcker-rule-deadline-a-strong-pushback-from-wall-st/

 

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This is just stupid.  I blame Wall Street for what happened as much as anyone (I actually think there should be criminal convictions) but this is silly.  If you think they committed a crime; then prosecute them criminally.  If you think their incentives are skewed or they take excessive risk, then regulate the firms going forward.  But don't apply a fine for something from 4-5 years ago that was, in Obama's own stated belief, completely legal.

 

Obama is the kind of person that can fall into a box of boobies and come out sucking his thumb.

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This is just stupid.  I blame Wall Street for what happened as much as anyone (I actually think there should be criminal convictions) but this is silly.  If you think they committed a crime; then prosecute them criminally.  If you think their incentives are skewed or they take excessive risk, then regulate the firms going forward.  But don't apply a fine for something from 4-5 years ago that was, in Obama's own stated belief, completely legal.

 

Obama is the kind of person that can fall into a box of boobies and come out sucking his thumb.

 

I agree with you on everything except the Obama and boobies part.  Smaller institutions did the same thing as many of the larger institutions.  Why aren't they going to be fined, since many of them also benefitted from the same generosity.  Cheers!

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I very much like the idea of accountability / responsibility. Now, instead of looking for responsibility for the financial crisis with potential suspects numbering in the tens if not hundreds of thousands (if one wants to take this down to unscrupulous mortgage loan officers, appraisers, etc) how about if we seek to assess a similar fee to those responsible for the US budget crisis and ever-expanding national debt. Hmmm...who could it be? CONGRESS? After all, that is the group who ratifies the national budget. No blaming Real Estate professionals or amphedimine-popping traders, it's our elected officials.

 

How does that sound?

 

-Crip

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