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Recouping Cost of the Wall Street Bailouts

July 28, 2010

Who is going to pay for the Wall Street bailouts?  Congress of course is going to go after the large banks themselves.  “The government would impose a 0.15 percent fee on large financial institutions with at least $50 billion in assets. Under the administration plan, the tax would fall on a firm’s assets, except those considered core capital or deposits that are backed by the Federal Deposit Insurance Corporation (FDIC).”  How will these fees affect large financial institutions?  Some may argue that the timing could not be worse, “Applying a new tax on financial institutions during our fragile economic recovery is unwise,” said Andrew DeSouza, spokesman at the Securities Industry and Financial Markets Association (SIFMA). 

With ultra conservative lending practices locking up the funds in our large financial institutions, when is the right time to collect these fees?  We are possibly a long way from full economic recovery, but most importantly we need to ensure that everyday we do the right thing to get out of this mess and hitting our largest financial institutions with substantial fees certainly will not help the situation right now.

If the fees do go into effect sooner than later, how will financial institution’s react to recover some of their losses?  One approach for them to take that will combat these costly fees, is to implement banking business intelligence, which will  improve operational efficiencies.  For example, FMSI’s The Teller Management System™ provides bank managment with decision-support intelligence.  By scheduling tellers based on forecasted transaction volumes, The Teller Management System™ helps banks gain better control of labor costs while increasing service levels.

Excerpts taken from article, Senate Dems say new bank tax is unlikely by Silla Brush

One Comment leave one →
  1. July 29, 2010 12:52 pm

    The author of this blog post believes mega banks should be the only banks that have to pay for this reform.

    What do you think?

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