Market Analysis

The U.S. government intends to obtain from financial companies $ 117 billion - in such an amount until the estimated losses of the budget and the taxpayers of the crisis operations. The new tax will constitute a commission of 0.15% of total debt excluding insured deposits and equity portfolio, as well as obligations to shareholders. Norma can begin to operate from June 30.

In February, the White House will send to Congress a draft federal budget for 2010-2011 fiscal year. The document, inter alia, involves the introduction of a new tax to finance companies. If Congress supports the initiative of President Barack Obama, the rule will be effective from June 30, 2010

must pay the new tax will have about 50 major financial companies whose assets exceed $ 50 billion, with revenue of more than $ 15 billion among them - 35 companies with headquarters in the United States, as well as 10-15 U.S. representative offices of foreign companies. Expected between 20 and 27 of these 50 companies are bank holding companies. In addition to banks, to pay the new tax will have to broker-dealer companies, insurance agencies and depositories. At the same time freed from the tax such major recipients of public assistance, such as mortgage agencies Fannie Mae and Freddie Mac in connection with their financial weakness, as well as automakers General Motors and Chrysler, who participated in the TARP program, along with banks.

In that calculation

According to the calculations of U.S. authorities, a special tax levy would bring the Treasury about $ 90 billion over 10 years, whereas the losses of the State of TARP program is currently projected at $ 117 billion at this time of the tax will be extended until until the government does not cover all losses. "The tax will remain in force so long as every penny TARP program will not be returned to the treasury," - said one of the government. In this regard, it is expected that payment of the new tax will be spread out over 10-12 years. According to authorities, a number of companies have not received state aid, also fall under the new tax. The Government argues that the fact that all major financial companies have benefited by the actions of the authorities to support the financial sector.

Proceeds from the new tax to 60% would be the 10 largest financial companies in the U.S.. According to The Wall Street Journal, tax, called the tax liability for the financial crisis (Financial Crisis Responsibility Fee), the greatest burden may lie in the six largest banks - Citigroup, JPMorgan Chase, Bank of America, Goldman Sachs, Morgan Stanley, Wells Fargo. Each of them it will cost more than $ 1 billion a year, while Citigroup and JPMorgan, perhaps more than $ 2.4 billion According to analysts, the tax would cost the banks about 5% of the final financial result. Because the tax will be levied on loans instead of deposits, the former investment banks (Goldman Sachs and Morgan Stanley) will suffer more than the consumer (Wells Fargo, Capital One).

Error Resident

European banks doing business in the United States, also suffer from imposing a new tax. According to the Telegraph, Britain"s three biggest banks - Barclays, HSBC, Royal Bank of Scotland (RBS) - will have to pay more than $ 11 billion because of large financial transactions in the United States. RBS, 84% owned by the State, Americans may pay about $ 1 billion of British taxpayers and shareholders. According to various estimates, Barclays Capital will have to pay annually to the U.S. government of $ 560 million to $ 680 million European banks with significant deposits in the U.S., for example, Spanish BBVA, will pay less. However, major investment banks, including the Germanic Deutsche Bank and Swiss Credit Suisse, will suffer more.

Debt largest bank in Europe - the British HSBC - U.S., according to the edition of The New York Times, up $ 391 billion in determining the tax base the bank may deduct from this amount, about $ 104 billion - that is how much are insured by the State deposits and equity capital that qualify for tax deductions. Thus, the tax base for HSBC will be $ 287 billion, which at a rate of 0.15% gives $ 430 million of tax payments per year, or 8% of projected operating profit of HSBC in North America. The tax would have a negative impact on HSBC, as the bank has a huge consumer lending unit in the United States, which U.S. law forbids attract deposits.

not the time for prizes

authorities and the U.S. population are outraged huge premium, which, despite the crisis, are paid to receive public assistance in the financial sector. Analysis of The Wall Street Journal showed that up to 2009 38 major financial companies in the United States will spend on premiums paid $ 145.85 billion, top managers, traders, investment bankers, fund managers and other employees of financial companies receive premiums of about 18% more than in 2008, and by 6% above the record level of 2007 Total revenues finkompany analyzed by WSJ, in 2009, presumably increased by 25% compared with 2007 - up to $ 450 billion expenditure on wages and Prize in 2009 accounted for 32% of revenues compared to 40% in 2008 On average, each member of the major U.S. financial companies earned in 2009, about $ 149.19 thousand

"I give the obligation to return every 10 cents that gave the American taxpayers. And my strong commitment to enforce this purpose only grow stronger when I see reports of large profits and obscenely high bonuses in the very companies that are responsible for the fact that there are still, the American taxpayer, who has not yet been recovered and are still experiencing real difficulties in the face of recession ", - said Obama.

lobby against

against tax initiatives Obama has already made by the representatives of the opposition Republican Party in Congress, as well as some congressional Democrats. "The financial sector is not a piggy bank, in which the authorities can climb each time experiencing problems with the financing of the federal budget deficit," - said a member of the U.S. House of Representatives Democrat Michael McMahon. "The tax has a very low chance of passage in the Senate, as nearly all Republicans and enough Democrats likely to vote against it" - says an analyst with FBR Capital Markets Paul Miller.
Banks intend

resisted the introduction of new tax. Representatives of the financial sector say that the new tax will limit the ability of banks lending, and foreign banks may push to reduce the presence in the United States. Thus the inevitable increase in interest rates will affect primarily at those very consumers who are seeking to protect the U.S. government.

"Application of tax policy to punish people - it is a bad idea. Any company will try to shift their costs to customers" - said the head of JPMorgan Chase Co. Jamie Dimon. "A tax on banks, many of whom have paid obtained under TARP funds at a profit to the government, unable to support economic recovery and increase lending volume, in addition, such an innovation will not meet the needs of American consumers," - says the president of Consumers Banking Association Richard Hunt.

to block the introduction of new banks collect the tax lobbyists. According to experts, if the bill will still be accepted, bankers will try every possible way to evade tax. Currently in U.S. law there are loopholes that allow it to do - is a commitment to withdraw from the tax base. To help in this securitization can either attract funds into deposits through third parties such as brokers or non-stock banks.

In turn, Barack Obama, referring to the banks, said: "Instead of sending the flanks of lobbyists to fight this initiative and to hire an army of lawyers and accountants for tax evasion, I think you can just think about meeting their obligations. We want to get the money back, and we will get them ".

Dmitry Bondarenko

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