President Obama may be listening after all or perhaps he has had enough with the financial-services companies. But, it is being reported that he is about to impose a fee on these companies as he seeks to cut the budget deficit in half.
Bloomberg.com: Administration officials declined to give specifics about how the fee would be structured. One said it may be included as part of the administration’s spending plan to be released next month. The proposal won’t include a tax on Wall Street bonuses or financial-services transactions, Politico reported earlier today, citing unnamed officials.
The U.S. budget deficit surged to $1.4 trillion last year in part because of bank bailouts paid for by taxpayers. Profits at finance companies, which begin reporting earnings later this week, have since rebounded and may triple by 2011, according to analyst surveys compiled by Bloomberg. Bank of America Corp., the biggest U.S. lender, said last week it expects to pay record bonuses to some investment bankers.
Obama will propose a way to recoup additional funds and among the options is a levy on financial institutions, one of the administration officials said.
