White House Shares A Few Details of New Bank Fee

In a fact sheet, the Obama Administration has outlined a few details about the Financial Crisis Responsibility Fee the President is submitting to Congress in his next budget. If the budget passes, the fee will be levied on financial institutions with more than $50 billion in assets, it will take effect June 30 of this year and it will last at least 10 years, or until the TARP is repaid in full. The government hopes to raise up to $117 billion.Banks will be assessed 15 basis points (0.15 percent) of covered liabilities per year. The fee will be calculated like this: assets - Tier 1 capital - FDIC-assessed deposits (and/or insurance policy reserves, as appropriate) X 0.15%. In an example given, a bank with $1 trillion in assets, $100 billion in Tier 1 capital and $500 billion in assessed deposits would pay $600 million to the IRS.