{"id":189979,"date":"2010-01-19T18:11:00","date_gmt":"2010-01-19T23:11:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/01\/19\/not-enough-bullets-78\/"},"modified":"2010-01-19T18:11:00","modified_gmt":"2010-01-19T23:11:00","slug":"not-enough-bullets-78","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/01\/19\/not-enough-bullets-78\/","title":{"rendered":"Not Enough Bullets"},"content":{"rendered":"

It looks like the fat cat Wall Street Bankers are looking at a legal challenge to Obama’s proposed bank tax<\/a>:<\/p>\n

Wall Street\u2019s main lobbying arm has hired a top Supreme Court litigator to study a possible legal battle against a bank tax proposed by the Obama administration, on the theory that it would be unconstitutional, according to three industry officials briefed on the matter.<\/p><\/blockquote>\n

Ummm \u2026\u2026\u2026 Despite the fact that these guys destroy \u00a37 of wealth for each dollar that they are paid<\/a>, and the fact that this is intended to collect money to replace those spent under the TARP law, which required<\/span> such a levy<\/a>, they still<\/span> believe themselves to be the masters of the universe, and they are outraged<\/span> at that Obama has unveiled a modest tax on their liabilities and spoken about them with less than glowing terms<\/a>.<\/p>\n

It’s really kind of whiny, since the tax is modest, and largely geared toward forestalling more punitive measures floating around Congress<\/a>.<\/p>\n

The tax is nominally 15 basis points (0.15%) on liabilities over $50 billion, and it appears to weigh more heavily on investment banks than depositor banks<\/a>, though the legal distinction was erased when the brokers all became bank holding companies. (See the FAQ from the Treasury Department)<\/a><\/p>\n

What’s more the tax is profoundly weak tea, as the effective tax is halved, yielding a tax of 7\u00bd basis points, which is well under the 78 basis point advantage in cost of funds that the “too big to fail banks” have over their smaller brethren<\/a>.<\/p>\n

Note also that this only covers the $117 billion or so of the TARP<\/a>, but when other bailouts are considered, we are approaching $30 trillion in money handed to banks<\/a>, without a thought of clawing that<\/span> back.<\/p>\n

So they are getting a sweetheart deal, and they are screaming like stuck pigs.<\/p>\n

They do not realize how angry people are, and they won’t until people literally start burning down their houses with torches.<\/p>\n","protected":false},"excerpt":{"rendered":"

It looks like the fat cat Wall Street Bankers are looking at a legal challenge to Obama’s proposed bank tax: Wall Street\u2019s main lobbying arm has hired a top Supreme Court litigator to study a possible legal battle against a bank tax proposed by the Obama administration, on the theory that it would be unconstitutional, …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[969,1004,1051,985,983],"tags":[],"class_list":["post-189979","post","type-post","status-publish","format-standard","hentry","category-evil","category-finance","category-hypocrisy","category-regulation","category-taxes"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/189979"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=189979"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/189979\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=189979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=189979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=189979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}