First of all, it's a tax. Call a spade a spade. Secondly, it's misdirected. The administration seems to be saying that this fee is supposed to encourage banks not to shell out huge bonuses (many of which are given after the bank took taxpayer money). Punishing a bank for its leverage doesn't really address the problem of huge bonuses. Why not punish a bank for making bonuses after taking tarp money? Wouldn't that actually solve the problem President Obama trying to resolve?
In my mind the worst aspect of this fee is that it can be applied to banks who never took a dime of taxpayer money. This robin hooding is unfair. Banks who are successful, and don't rely on government bailouts, are being punished.
What are your thoughts?
