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CBO Warns Obama's Proposed Bank Fee Could End Up Costing Consumers

President Obama's proposed fee on the country's biggest banks receiving taxpayer bailout money would ultimately result in costs to the firms' customers, employees, and investors, a non-partisan Congressional watchdog said today.

In January the President unveiled a proposal to impose a fee on about 50 of the nation's biggest banks with assets of $50 billion or more in an effort to recoup around $90 billion of taxpayer money dished out as part of the Wall Street bailout.

"We want our money back and we're going to get it," the President said.

But the Congressional Budget Office today warned that "the ultimate cost of a tax or fee is not necessarily borne by the entity that writes the check to the government."

"The cost of the proposed fee would ultimately be borne to varying degrees by an institution's customers, employees, and investors," the CBO said today in a letter to Sen. Chuck Grassley.

Who would have guessed?

 
Anonymous

Asked by Anonymous at 8:24 PM on Mar. 4, 2010 in Politics & Current Events

This question is closed.
Answers (13)
  • COULD end up costing consumers? Like there was ever a question?

    QuinnMae

    Answer by QuinnMae at 8:38 PM on Mar. 4, 2010

  • http://blogs.abcnews.com/politicalpunch/2010/03/cbo-warns-obamas-proposed-bank-fee-could-end-up-costing-consumers.html

    Anonymous

    Answer by Anonymous at 8:25 PM on Mar. 4, 2010

  • That was a no brainer from the get go.
    Anonymous

    Answer by Anonymous at 8:30 PM on Mar. 4, 2010

  • COULD end up costing consumers? Like there was ever a question?


     "Could" is what politicians use to cover their ass to get a vote....

    grlygrlz2

    Answer by grlygrlz2 at 8:42 PM on Mar. 4, 2010

  • Yes it probably will be passed on to customers. The thing is though, the banks got into their own mess, and had to be bailed out. Its a no-win situation.
    stacymomof2

    Answer by stacymomof2 at 9:00 PM on Mar. 4, 2010

  • Some of us said this months ago.No they did not have to be bailed out and this fee was being put on some bank that did not even get a bailout.
    tnmomofive

    Answer by tnmomofive at 9:05 PM on Mar. 4, 2010

  • banks
    tnmomofive

    Answer by tnmomofive at 9:07 PM on Mar. 4, 2010

  • They shouldn't have been bailed out in the first place. They should have gone into bankruptcy and reorganized or been sold off....someone would have bought their components.

    I think it is silly to penalize some of them when the money has been paid back and some of them didn't want the money in the first place. BO is painting too many of them with the same "evil" brush.
    yourspecialkid

    Answer by yourspecialkid at 9:26 PM on Mar. 4, 2010

  • Of course, it will, what's new?
    agentwanda

    Answer by agentwanda at 9:53 PM on Mar. 4, 2010

  • If they were not bailed out ,wouldn't they close? What would happen to your money? What about your checking and savings accounts? The FDIC would run out of money and even though you think your money is insured by the FDIC, it won't work. Your funds would be gone.. SO....unless you keep your money under your mattress or buried in your back yard in a coffee can, you had better be glad that the banks were bailed out.
    Anonymous

    Answer by Anonymous at 10:48 PM on Mar. 4, 2010