Target-Bank

We may have heard it before but now there is news that the President is proposing a special tax on the biggest banks to pay for the billions of dollars in bailout money that the U.S. It is suppose to raise enough money to recoup the taxpayer’s money. The most liberals want to go even further and tax their bonus like the U.K. did. All this at a time when Wall Street is the Public Enemy No.1. But all this taxes and other things will really make Wall Street banks pay attention to the main street. I highly doubt it.

For example my account has now been hit by maintenance fees which previously were not. Does anyone believe that the banks would absorb this tax alone by itself? No way, the bank will try to raise various fees or invent new ones or make everybody pay for the services which were provided free before on a fee per request basis.

Bank have to become profitable and they would do whatever they can in this era of increasing regulations to squeeze any fees they can find and all this legislations and rules and regulations will come to naught.

To ask the banks to behave will have to come from an insider whom the banks feel have their interest at heart without abandoning the main street (which is inevitable). This entire populist backlash against banks will not make them saints.

In other news the banks are now in a position to give their biggest bonus in a few weeks time. Let’s see how it plays out. I will talk about it when they announce it.