WASHINGTON, Jan. 14 (UPI) -- The U.S. government looks to recoup money lost in the financial industry bailout with a tax on about 50 large banks.
U.S. President Barack Obama scheduled an announcement Thursday that is expected to call for a levy to take in about $90 billion over 10 years. A senior administration official on Wednesday said the tax would be to repay money borrowed under the $700 billion Troubled Asset Relief Program.
Exactly which firms face the tax wasn't released ahead of Obama's announcement, but the administration official did say that automakers General Motors and Chrysler, insurance company American International Group and the government-run Federal Home Loan Mortgage Corp. and Federal National Mortgage Association -- Freddie Mac and Fannie Mae -- aren't in position to repay the taxpayer funds given them.
Firms affected would have assets of more than $50 billion. Companies that received some of the largest loans from TARP include Bank of America Corp., Goldman Sachs Group Inc., JPMorgan, Morgan Stanley and Wells Fargo & Co. but even institutions that didn't receive government help could be liable to the tax.