Fallout: The Financial Crisis

Big banks may pay more for regulation

Marketplace Staff Aug 14, 2009
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Fallout: The Financial Crisis

Big banks may pay more for regulation

Marketplace Staff Aug 14, 2009
HTML EMBED:
COPY

TEXT OF STORY

Bill Radke: You probably know President Obama wants more regulation of banks. Now we learn the administration wants big banks to pay more for those rules. From Washington, reporter Tamara Keith has more.


Tamara Keith: The administration reportedly wants to create a two-tiered pay for regulation system. The Washington Post says larger firms would pay more than they are currently paying, while smaller banks would face less of a burden. Under the proposal, unregulated institutions like some mortgage lenders will pay these types of fees for the first time. This would cover the cost to fund President Obama’s Consumer Protection Agency.

The thought is larger banks, because of their complexity, are harder to regulate so they should pay a greater share. Perhaps not surprisingly, those banks don’t like this proposal. A spokesman for the Financial Services Roundtable called the fees uneven and disproportionate.

In Washington, I’m Tamara Keith for Marketplace.

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