http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/699...

Britain's three biggest banks are to be forced to pay more than $11bn (£6.7bn) as part of the $90bn super-tax President Barack Obama intends to impose on the US financial services industry in order to repay American taxpayers for their $700bn assistance in the financial crisis.

The three – Barclays, HSBC and Royal Bank of Scotland – will be caught by the US Financial Crisis Responsibility (FCR) fee due to their sizeable operations in the US, which wants to recoup losses stemming from its $700bn bail-out of the banking sector.

Barclays is expected to be the worst hit, on the hook for a levy of as much as $680m a year over the next ten years, according to analyst David Hendler at CreditSights.



HSBC and RBS are, according to forecasts from Execution, set to face annual payments of around $380m and $90m respectively.

President Obama is introducing the decade-long tax to tackle what he called "massive profits and obscene bonuses," at banks "who owe their continued existence to the American people," saying his intention is not to punish Wall Street, but to prevent further abuses and excess.

the US President said he intends to recover "every single dime" US taxpayers are owed: "We want our money back, and we're going to get it. We cannot go back to business as usual."

The tax will be levied annually, as 0.15 percentage point fee of covered liabilities. It will only apply to institutions with assets of more than $50bn, capturing 35 US banks and 15 foreign ones.

The tax will form a central part of President Obama's budget for the 2011 fiscal year, and will be levied annually for either ten years, or until losses outstanding from the bail-out have been repaid.

Current estimates put the loss at $117bn, although Treasury officials expect that to reduce to around $90bn, the amount the tax should raise over the course of a decade.

The tax is structured to penalise the riskiest activities, targeting activities funded through the wholesale money markets, rather than insured deposits held in retail banks. As a result, investment banks will be hit hardest, with Goldman Sachs estimated by Betsy Graseck, banks analyst at Morgan Stanley, to be facing a $768m bill, and Citigroup an annual charge of $1.44bn.

President Obama urged bank boards not to pass on the fees to shareholders or customers, but instead roll bank bonuses for senior executives and "consider meeting your responsibility."

The Whitehouse also said it was not ruling out taking legislative action in future on bank bonuses. The FCR fee, which will be subject to Congressional approval, is the US's alternative to the UK's tax on banker's bonuses.

Professor Stefano Harney, of Queen Mary Univeristy's school of business and management, said that the argument that banks might flee London as a result of the 50pc tax on bonuses is "now dead and buried." This "news...ought to ensure that new taxation for the City of London becomes a permanent feature of the landscape here," he said.

Barclays, RBS and HSBC all declined to comment.

Views: 33

Reply to This

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega posted a blog post

Something is Making Fishermen Disappear It’s not Alligators or Sharks

 The setting is a section of the Ohio River where many locals enjoy fishing, swimming, and boating.…See More
3 minutes ago
Sandy posted photos
5 minutes ago
Роман is now a member of 12160 Social Network
3 hours ago
Doc Vega posted a blog post

Always Wondering

The face of reality pressed against your window paneIs it engineered or is it real rain?So, you…See More
yesterday
tjdavis favorited Burbia's video
yesterday
tjdavis posted a photo
yesterday
cheeki kea commented on cheeki kea's photo
Thursday
cheeki kea posted a photo
Thursday
rlionhearted_3 posted a photo
Thursday
Sandy posted photos
Thursday
james will posted a blog post

how to doanload mp3 online?

An MP3 downloader is a useful online tool that allows users to convert and download their favorite…See More
Wednesday
Doc Vega commented on rlionhearted_3's photo
Thumbnail

Another incredibly Stupid!! What, no mirrors?

"Personally , I go for the more classic forms of cosmetic surgery! "
Tuesday
Doc Vega posted blog posts
Tuesday
Less Prone favorited tjdavis's video
Tuesday
Less Prone commented on rlionhearted_3's photo
Thumbnail

Another incredibly Stupid!! What, no mirrors?

"When the problem is inside, it causes transformations like this. I like the original better. Maybe…"
Tuesday
Less Prone favorited james will's blog post YouTube Downloader Tools You Never Knew Existed
Tuesday
james will posted a blog post

YouTube Downloader Tools You Never Knew Existed

A YouTube downloader is an online tool or software that helps convert YouTube videos into…See More
Tuesday
tjdavis posted a video

Experimenter - Official Trailer

Like on Facebook: https://www.facebook.com/experimenterfilmYale University, 1961. Stanley Milgram (Peter Sarsgaard) designs a psychology experiment that stil...
Tuesday
Doc Vega posted a blog post

How Did the Soviets First Discover the SR-71 Blackbird?

Although President Lydon Johnson announced the development of the Lockheed SR-71 in 1964 which…See More
Sunday
Doc Vega commented on Burbia's blog post Disgraced Former CNN Anchor Don Lemon Arrested
"Personally, I don't consider Don Lemon or people like him to be journalists at all. They are…"
Feb 1

© 2026   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted