The Obama administration said Monday it wants to make the nation's largest banks pay for the losses incurred in the $85 billion auto and other bailout programs. As part of the administration's proposal to cut the deficit by more than $3 trillion over 10 years, the White House has resurrected a proposal to create a "Financial Crisis Responsibility Fee" — raising $30 billion over 10 years.
The fee is aimed at recouping losses from the government's $700 billion Troubled Asset Relief Program — the emergency fund created in 2008 by Congress to rescue banks, insurance companies and automakers.
In January 2010, President Barack Obama first backed imposing a fee on big banks to cover auto losses — after Rep. Gary Peters, D-Bloomfield Township, introduced a bill to do so in late 2009. At the time, the fee was expected to raise $90 billion over 10 years from the 50 largest institutions, including Ally Financial Inc., the Detroit-based auto and mortgage lender
Read Article