Obama’s $90bn levy could cost UK banks over £6bn
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President Barack Obama’s £55bn Financial Crisis Responsibility Fee could cost UK banks £6.7bn.
The fee, which will be active for at least 10 years, will be levied on all firms with more than £31bn of assets, including all G20 firms operating in the USA. It will raise £55bn over the next decade, rising to £72bn over 12 years.
But according to the Telegraph, it will cost Barclays, HSBC and Royal Bank of Scotland around £6.7bn due to the size of their operations in the US.
Barclays could face annual payments of £416m over the next 10 years, HSBC around £233m a year and RBS around £55m.
Obama unveiled the tax yesterday as he looks to curb investment banks risky activities, and pay back the taxpayer money lent through the Troubled Asset Rescue Program, which has cost the US £72bn.
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Readers' comments (1)
Julian Stevens | 15 Jan 2010 12:12 pm
Why is neither the UK government or the FSA telling the banks bailed out by all us tax payers that they must pay back every pound (with interest) pumped into them to stop them going under? Until that has been achieved, there should be no more bonuses and the only profits that the banks in question will be allowed to retain must be set aside as reserves against future disaster resulting from incompetent and reckless practices.
It seems so simple and obvious.
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