President Obama’s proposed Financial Crisis Responsibility Fee, which he unveiled last month, has been included in the 2011 budget proposal released on Monday, February 1, 2010.
The proposed fee is projected to raise up to $117 billion in order to repay the projected cost of the Troubled Asset Relief Program (TARP). It would apply to financial firms that own over $50 billion in consolidated assets and either (a) owned insured depository institutions or securities broker-dealers as of January 14, 2010, or (b) become one of these types of firms after January 14, 2010. These companies would be assessed at approximately 0.15% of covered liabilities per year.
If enacted, the fee would go into effect on June 30, 2010 and remain in place for at least ten years.