1/4% Tax on all stock trades pushed in NY Times today

Quote from achilles28:

How does that make us "safe" ?

"High-risk transactions" could run the gammit of speculation. Any "tax" levied on investment banks gets passed down to customers --- namely downstream brokerages that we trade through !
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You trade through one of the thirty biggest banks? Most of us trade through a moderate size broker-dealer. If your broker pass the costs on you, change broker...Simple as that.

I really like how things are turning lately. They totally deserve it. Taxing OTC is a great idea. So much for the usual conspiracy theorists...You can't be saved from bankruptcy one year and pay record bonuses the next. Remember they are the reason why this TT threat exist and why we are glued to this thread.

Continue to fight. This time we will be fine.
 
Quote from listedguru:

Obama To Announce New Big Bank Fees Thursday:

http://whitehouse.blogs.foxnews.com/2010/01/12/obama-to-announce-new-big-bank-fees-thursday/

"President Obama will announce new fees on "high risk" transactions carried out by big banks as part of a complicated White House effort to recoup bailout funds, address simmering anger over bank bonuses and simultaneously shield consumers from the bank levies."

"Under discussion since August, the fees are designed to discourage the edgier risk-taking investments such as derivatives, mortgage-backed securities or collateralized debt obligations that bigger banks used to pad their profits before the financial meltdown."

-Guru
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Maybe those that trade stocks are calm, but its not clear to me that those of us that trade futures are in the clear, based on what is written here.

Are we relying too much on the word 'bank'? When the UK announced its 'banker bonus taxes' it materialized that what they meant was a tax on financial institutions such as hedge funds, brokers, etc.

If Obama has been misled to believe that '0.02% on derivatives is small and harmless' those of us that trade futures are screwed. I'm not sure its realistic to expect OTC and exchange traded derivatives to be taxed differently. And whilst its easy to see how taxing stocks hits main street many laymen assume that derivatives are just for the 'pros'.

Maybe I'm missing something here? But I'll be happier when he hear what is announced...
 
Obama to Announce Fee on 20 Banks to Recoup TARP:

http://news.yahoo.com/s/bloomberg/20100113/pl_bloomberg/abluopyu48ky

"Jan. 13 (Bloomberg) -- President Barack Obama will announce his intention to impose a fee on more than 20 of the country’s largest banks and financial institutions to help recoup taxpayer bailout money and trim the federal budget deficit, an administration official said."

"The fees, expected to be spread over as many as 10 years, will be based on the leverage or amount of liability each firm has, the official said, who spoke on the condition of anonymity."

It sounds like it's going to be based on the leverage or liability of the firm and not on their transactions as was previously reported. This is fine by me:)

-Guru
 
Obama to announe fee on 20+ top banks' liabilities tomorrow:

http://www.politico.com/morningmoney/

EXCLUSIVE: President Obama will announce tomorrow that his upcoming budget will include a fee on more than 20 of the nation’s largest banks and other financial companies, based on the amount of leverage or liability that the firm has. The aim is to recoup the taxpayer cost of TARP, which is now expected to be less than $100 billion. This is designed to address the complaint that these firms got really cheap money and then continued past risky practices, with an implied guarantee. The administration settled on this fee, to be spread over as many as 10 years, because it applies to more exotic products and won’t be passed along to retail customers.

-Guru
 
Quote from listedguru:

Obama to Announce Fee on 20 Banks to Recoup TARP:

http://news.yahoo.com/s/bloomberg/20100113/pl_bloomberg/abluopyu48ky

"Jan. 13 (Bloomberg) -- President Barack Obama will announce his intention to impose a fee on more than 20 of the country’s largest banks and financial institutions to help recoup taxpayer bailout money and trim the federal budget deficit, an administration official said."

"The fees, expected to be spread over as many as 10 years, will be based on the leverage or amount of liability each firm has, the official said, who spoke on the condition of anonymity."

It sounds like it's going to be based on the leverage or liability of the firm and not on their transactions as was previously reported. This is fine by me:)

-Guru
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that sounds ok...will be interesting to see if the measures are enough to jolt the rally in stocks...
 
Quote from benwm:

that sounds ok...will be interesting to see if the measures are enough to jolt the rally in stocks...
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The news of a transacation tax never made the market blink so I doubt this will rally stocks, but in any case it can actually be bad for the market. Because now this is real and banks will have to pay is the bottom line which is never good.
 
Quote from rsikit:

The news of a transacation tax never made the market blink so I doubt this will rally stocks, but in any case it can actually be bad for the market. Because now this is real and banks will have to pay is the bottom line which is never good.
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I think my statement was ambiguous...I mean I think stocks could take a hit on this, especially today due to the uncertainty etc...
 
Quote from benwm:

I think my statement was ambiguous...I mean I think stocks could take a hit on this, especially today due to the uncertainty etc...
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Got ya. We shall see if they do put out the details on Thursday, it could hit the markets then if they give us a detailed explanation how the banks will pay
 
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