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Right now are Peter -- I think what Nancy Skinner thank you David.
Red carpet -- that the White House knew that Gene Sperling from the Treasury Department -- New bank tax Peter go ahead take it away.
Carol and that that's right Gene Sperling counselor to the Treasury Secretary -- The bank tax these Securities Industry and Financial Markets Association has put out a statement late today and -- -- and move.
The story forward a little bit here the this -- the securities industry trade group.
And -- and you're not gonna tell me.
You're not gonna do a news flash and tell me that the lobbyist.
For the largest banks are going to impose a fee on them right saying that they have let payback they taxpayers they -- the extraordinary access and favors they say they have some practical concerns -- that concerned that the government would consider this approach.
Rather than first collecting all outstanding TARP loans.
Plus interest in accordance with the law and then determine a strategy to recoup any remaining -- what's wrong with that.
What's wrong with that is that we need we are in a process of trying to rebuild trust and responsibility.
In dealing with our financial system.
And you know the public does not want the president of the United States to wait to the last possible moment to make clear.
That he is going to ask the financial industry as a lot will require.
To make sure that the taxpayers are made hall and the extraordinary benefits the taxpayers have offered to the financial industry.
Do not result in higher deficits and higher debt.
Passed on to our our children I think that this Netflix deficit politics that it's a sense like deficit court.
But I think I think there is both a values component to this as well this is about responsibility.
You know these financial institutions many of them may have gone bankrupt why did they not have to go through bankruptcy because there is a decision made.
That their financial stability was important.
Not to the individuals who run those banks the -- are larger economy.
They are extraordinary beneficiaries of extraordinary assistance and I think the president is saying that the least you can do.
Is to make sure that the taxpayers many of whom are still suffering in this in this difficult economy -- -- hall.
And to start doing that right now.
Is makes a lot of sense and I should say.
You know it is the president sad.
If a lot of them can afford to announce fifteen point 825 billion dollar bonus pools.
This year they can probably afford to start paying back the taxpayer -- made there -- new success possible but what happens here.
About the estimates -- you've made you you believe that the that the TARP will eventually cost taxpayers about ninety billion dollars but as you know.
Economists and analysts are notorious for getting these projections.
Wrong what happens if in fact.
The banks in the auto companies and -- Do pay everything back and full.
In 2345 years and you've launched this tax in the industries paid all this money -- are they gonna get a refund.
Listen I mean there's no question that a lot of the good news that's happened over the Obama administration is -- the expected costs have come down because.
There has been some success in financials to -- stabilization in the management.
-- -- like every other that would they get a refund if the numbers are -- well now be that the reason why is what we've said is that it would last at least ten years.
And I think when you look at both.
The extraordinary benefit.
The windfall that many have received and when you look at the breath of the cost imposed on our economy on taxpayer from the depth of this recession.
In very much contributed to.
By the financial industry.
I think this is a very reasonable amount.
And and a minimum that can be that can be paid back your friendly neighborhood lobbyists from Wall Street also -- on a practical level one of their other concerns about this without getting into the weeds on capital structures of banks.
That you you're gonna end.
Had -- Disproportionately impacting wholesale capital markets which support US consumers -- mortgages home loans student loans your response let me tell you something this -- this fee applies this a fee applies to.
Forty year fifty -- the largest banks if they choose to instead of reducing their bonuses and compensation.
To pass it on and higher mortgage caustic -- they've got 95% of their competitors were more than happy to take their business.
I don't think it's going to raise costs I think they'll hurt themselves competitively and I think will hurt themselves in the public.
If they pretend that they can't afford to pay back the American taxpayers start doing that.
At the same time they're announcing what are -- Quite quite excessive bonus pools and we know that is coming.
Some late news today not necessarily your portfolio -- -- -- by a secretary Geithner is gonna go up to the house oversight committee testified.
About this controversy about me.
Yeah about AI GN disclosure.
And bad lawyers.
Urging -- not to fully disclosed that stood SEC filings.
The the details of the government assistance -- while the Treasury Secretary was the president of the New York -- what does that.
Secretary and it -- the committee.
We'll look at you know much of what -- come out has been about after he had refused himself.
Was -- coming sector treasury but -- Geithner is never.
Upset to have a chance to set the record straight again.
And again and and there's no problem doing he's gonna repeat the administration was -- he he had no involvement -- administration position.
That's the facts and the truth.
Gene Sperling thanks so much for joining us.
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