Obama Seeks $90B From Tax on Banks

President Obama will look to levy a tax on about 50 of the nation's largest financial institutions to force them to repay taxpayer losses on bailout funds.
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WASHINGTON (

TheStreet

) -- President Obama will look to levy a tax on about 50 of the nation's largest financial institutions to force them to reportedly pay about $90 billion to the U.S. government over 10 years.

Obama is expected to announce details of the "financial crisis responsibility fee" later Thursday morning.

According to the

Associated Press

, Obama plans to propose a levy of 15 basis points, or 0.15%, on the liabilities of the banks to make sure every dollar spent from the $700 billion Troubled Asset Relief Program to rescue the financial firms and automakers is either repaid or paid for.

A senior administration official told the

AP

the tax would apply only to financial companies with assets greater than $50 billion. Some of the firms will be forced to pay the fee even if they didn't receive TARP funds or already paid back the funds they borrowed from the government.

The

Wall Street Journal

reports about half the 50 would be U.S. banks, including

Goldman Sachs

(GS) - Get Report

,

JPMorgan Chase

(JPM) - Get Report

,

Bank of America

(BAC) - Get Report

and

Morgan Stanley

(MS) - Get Report

.

American International Group

(AIG) - Get Report

will have to pay the tax, but automakers

General Motors

and

Chrysler

won't be subject to the levy,

AP

reports. Other reports say

Fannie Mae

(FNM)

and

Freddie Mac

(FRE)

also won't be subject to the tax.

The fee needs approval from Congress.