Hillary Clinton’s proposed “risk” fee on big banks and other firms is aimed at discouraging large financial cos. “from relying on excessive leverage and the kinds of ‘hot’ short-term money that proved particularly damaging during the crisis,” according to her plan.
- Fee wouldn’t be applied to insured deposits and thus wouldn’t affect traditional banking activities
- NOTE: The Democratic presidential candidate is calling for a graduated risk fee on liabilities of banks with >$50b in assets; fee rate would be higher for cos. with greater amounts of debt and for firms with riskier, short-term forms of debt
- NOTE: President Obama proposed similar fee, which his administration said would raise $110b, earlier this yr; financial cos. fought the proposal and Senate Banking Chairman Richard Shelby, R-Ala., called plan “dead on arrival”
- NOTE: Clinton’s proposal is part of broad plan she says is aimed at curbing Wall Street “abuses”