January 14th, 2010
01:00 PM ET
4 years ago

Obama calls for bailout tax

NEW YORK (CNNMoney.com) - President Obama on Thursday called on Congress to tax the largest banks to ensure that U.S. taxpayers don't lose a penny from the federal bailout of the financial, auto and insurance industries over the past year.

The "financial crisis responsibility fee" would target major institutions. It would be levied on those that were the main contributors to the financial crisis and the most significant beneficiaries of the extraordinary actions taken by the Federal Reserve and the Treasury Department.

"My commitment is to recover every single dime the American people are owed," Obama said. "We want our money back and we're going to get it."

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Filed under: Obama administration • President Obama • TARP
soundoff (52 Responses)
  1. Jasmine in Germany

    Yes, they should tap their bonus pools. A very smart president, indeed. My respect goes to President Obama. Let's hope the opposition doesn't try to screw this up too.

    January 14, 2010 02:06 pm at 2:06 pm |
  2. Jane/Seattle

    Good Idea, President Obama. That is unless the same deal is already decided just like Health Care!

    One who lays down with dogs is likely to get Flies! That's an old adage my Mom used to tell me back in the olden days! Moral of this story: If ypou hang out and get your advice from Wall Street, it will be most difficult (if you pick them over the People) to EVER Please or Help Main Street! Show Me because right now I am not, nor have I ever been a True Believer in this WAY! Thanks for considering my words. Peace :o

    January 14, 2010 02:07 pm at 2:07 pm |
  3. Paul from Phoenix

    This is a brilliant move. So, Obama is going to tax the banks, who in turn are going to fee us consumers to death. Is he really stupid enough to think that the banks are going to allow themselves to be taxed like this?

    Thanks Obama! You really have a grasp on the way the real world works!

    January 14, 2010 02:08 pm at 2:08 pm |
  4. Dirk Peddler

    Hmm more of his big government tactics. Who does he think end up paying for those 'taxes'? The same taxpayers that bailed them out, banks and financial institutuions will simply increase their fees, so we are going to pay ourselves back. This president really has no clue.

    January 14, 2010 02:08 pm at 2:08 pm |
  5. Steve (the real one)

    Anybody want to bet that this "tax" will be passed on to us? Why do liberals want to tax everything that moves?

    January 14, 2010 02:13 pm at 2:13 pm |
  6. voter

    good. I agree with this. for those who say that the industry will raise consumers fees is not a sound argument for several reasons. banks are already raising fess since last year. now there is a fee on using a debit card as a credit card so banks can make money they will lose from the credit card bill which takes effect next month. in reality, the banks are doing everything possible to continue to flourish and using the excuse that they are broke so therefore fees has to rise. please. they don't seem to be broke if they can afford 18 billion dollars in bonuses. point is to not fall for the lies of the banks. they are trying to scare consumers so they can continue their criminal practices.

    January 14, 2010 02:14 pm at 2:14 pm |
  7. no2gop

    I'll believe it when I see it and I hope I see it in the near future. The Fed should act like a loan shark to these financial institutions. Sure we will bail you out but you will pay a massive interest payment to the American people for the right to be saved from your own greed. I have a 800+ credit score, 40% loan to value ratio on my primary mortgage and BOA quoted me 9.75% interest rate on a 30 year fixed rate HELOC. That's 9.75% on money the bank borrows for free from the Fed. There is something very wrong here.

    January 14, 2010 02:17 pm at 2:17 pm |
  8. james

    It's now official... Barack Obama is the biggest idiot to ever grace The White House. HEY STUPID - do you honestly think that the banks are going to let you take their money, AFTER THEY'VE PAID THE GOVERNMENT BACK WITH INTEREST, without recouping it through user fees? Do you think they're going to make loans to businesses wanting to expand and create jobs when you're stealing their money to cover the ridiculous AIG bailout? How big a fool are you anyway? When we get rid of this bozo in 2012, the first thing the Republican president has to do is issue Executive Order No. 1 repealing this inane, asinine tax.

    January 14, 2010 02:26 pm at 2:26 pm |
  9. RB

    i do not condone the derivative products that were created that got us into the mess. With that said, why does Obama lambast the banking sector when they have paid back principal plus an attractive interest rate on their TARP funds. Also remember, over half of the banks that originally took the funds did not want them. The government did not give them a choice.

    My question is this: the companies that Obama directly dealt with, AIG, GM, Chrysler, Freddie and Fannie are not charged this tax and more than likely will not pay back their TARP funds. The banks under Bush that were given TARP funds are expected to pay back every penny plus interest and dividends.

    Does any one else out there see a problem with this?

    January 14, 2010 02:30 pm at 2:30 pm |
  10. Jeff in Atlanta

    When will the insanity end? He panders to the worst in people. Does he really think banks pay taxes?

    The only entity that can pay a tax is a person. The corporations just collect taxes paid by people and pass them on to the government. Corporations are owned by people, hence people pay the taxes.

    Prices will rise to reflect the companies extra costs, dividends cuts, job losses etc...

    People will pay this tax, to say otherwise is disingenuous at best.

    January 14, 2010 02:32 pm at 2:32 pm |
  11. J Malone

    "We want our money back and we're going to get it."

    YES! Obama RULES!

    January 14, 2010 02:34 pm at 2:34 pm |
  12. getreal

    Rock On Mr. President!

    January 14, 2010 02:34 pm at 2:34 pm |
  13. Dutch the Great

    That's having backbone Mr. President. We should add interest on to it if they're late in repayment. How about we do them what they do to every middle class American? Let's jack up the interest rate on them and don't give them forewarning. WE WANT OUR MONEY BACK!!!

    January 14, 2010 02:35 pm at 2:35 pm |
  14. Marty, Grand Rapids MI

    Cool. We all know they are not going to pay this tax with bonus Money but sounds good to me. If you do business with these banks, make sure you are not the one paying for this.

    January 14, 2010 02:43 pm at 2:43 pm |
  15. Ron in California

    It seems a little harsh and unfair to tax those financial institutions who have repaid the stimulus money plus "interest". Particlarly those that took the money only because the Govt insisted. It is further unfair not to tax Fannie and Freddie who were big players in the financial crisis. As far as the auto industry...can't squeeze blood out of stone...oh and the US taxpayer owns most of GM. I guess politicians don't care about fairness.

    January 14, 2010 02:45 pm at 2:45 pm |
  16. NotFooledTX

    Good, tax the hell out of them or break them up. If there is a next time, let them fail.

    January 14, 2010 02:47 pm at 2:47 pm |
  17. WrongKindofChange

    Obama is an idiot! He's not taxing the banks, he's taxing the american people. All the banks are going to do is pass that tax on to us, the people. This is the democrats way of raising taxes without directly raising the income tax. They think the american people are too stupid to know what they are doing.

    January 14, 2010 02:51 pm at 2:51 pm |
  18. aneanderthal

    Another proud supporter of the drive to destroy wealth for the collective, more for the dope smokers so they can continue on entitlement programs, watch Oprah and vote democratic. The perfect con.

    January 14, 2010 02:52 pm at 2:52 pm |
  19. JES

    Another tax that will be passed on to the consumers thanks.

    January 14, 2010 02:54 pm at 2:54 pm |
  20. liberal wingnut

    What about the money Obama keeps spending?

    January 14, 2010 02:55 pm at 2:55 pm |
  21. Orange Curtain, CA

    Good...you know we should also investigate Paulson and allegations of abuse of power. There is no accounting of what the money was spent on or where it went.

    January 14, 2010 02:55 pm at 2:55 pm |
  22. Confused in Neb.

    And where do you think the banks are going to get that money ?? It's sure not coming from the HUGH bonus pools for executives. The consumer will be the one's footing the bill AGAIN with higher fees and intrest rates on loans and Credit Cards.

    January 14, 2010 02:58 pm at 2:58 pm |
  23. Sniffit

    yeah, i want my money back from your 780 billion economic scam package

    tax congress and use money for new representitives

    January 14, 2010 02:58 pm at 2:58 pm |
  24. Reaganomics Leads To Feudalism

    I believe that executive compensation packages and executive bonuses should be taxed. That's where all of the money from fees and penalties is going.

    And while we're at it, let's tax executive compensation packages and executive bonuses across the board.

    I'm sick and tired of private health insurance and big pharma executives making the outraguous money they make, and then paying off politicians to block and obstruct real healthcare reform so they can keep making themselves richer and richer while America suffers.

    These people shouldn't be paying themselves this kind of money, period. It's outraguous to think what these executives are doing to this country.

    January 14, 2010 03:02 pm at 3:02 pm |
  25. Remus Redbone

    And so it begins, taxes on institutions that all liberals can love, but their simple minds can't understand the impact. Go ask your bank president/CEO where the funds come from to pay their current taxes....

    January 14, 2010 03:02 pm at 3:02 pm |
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