Opposition rising to Obama's proposed bank tax - KMOV.com

Opposition rising to Obama's proposed bank tax

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By Jacob Kuerth By Jacob Kuerth
By Jacob Kuerth By Jacob Kuerth

KMOV - President Obama says he has a plan to get taxpayer bailout money back from banks, but not everyone locally agrees with the idea.

The president rolled out a proposed new tax Thursday on the country's largest banks, which is estimated to raise $90 billion over ten year.

Obama says he wants to get taxpayer money back and encourage reform in an industry that helped cause the economic recession.

Some in the St. Louis area opposing the proposal say the fees big banks incur will only be passed to the banks' customers.

First National Bank of St. Louis is not big enough to be affected by a new tax because they did not take TARP fund. President Rick Bagy, though, still has strong opinions about the newly proposed fee.

"This fee, whatever type of fee it is, eventully will be paid for by the consumer," Bagy says. "So, if you think you like the fee, eventually you and I are going to pay for it."

Bagy says the move would do more harm to the public because banks would look for ways to get back the costs.

"Somewhere along the line, maybe the overdraft fee will go up by a dollar, or maybe the service charge will go up by fifty cents, or the credit card rate goes up by a quarter, so it will cost the customers of those banks," says Bagy.

The banking industry plans to put up a fight, and claiming banks are already paying back TARP funds with their interest costs.

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