US president Barack Obama plans to impose a fee on banks expected to raise about $120 billion in order to help recoup losses from the Troubled Asset Relief Program, an administration official said.
The White House hasn't settled on the final structure of the fee and how to target the big banks that have returned to profitability, said the official, who request anonymity.
The plan is to have revenue from the fee dedicated to deficit reduction and to cover the amount that the Treasury Department estimates it will lose from Tarp, which is $120 billion. Details will be contained in the fiscal 2011 budget that Mr Obama will submit to Congress next month, the official said.
Bloomberg