Obama outlines $117bn bank levy
President Barack Obama has said Wall Street must repay $117bn (£72bn) to taxpayers and criticised banks for "massive profits and obscene bonuses".
The tax is to recoup money US taxpayers are expected to lose from bailing out the banks during the financial crisis.
"My commitment is to recover every single dime the American people are owed," the president said.
The move follows populist anger at banks, seen as being responsible for causing the recent economic crisis.
Average American
"My determination to achieve this goal is only heightened when I see reports of massive profits and obscene bonuses at the very firms who owe their continued existence to the American people," the president said.
He said the aim was not to punish Wall Street firms but to stop abuses and excesses from happening again.
The BBC's Michelle Fleury said the president had made clear "in strong language" that the banks must repay the taxpayer, through what is being dubbed a "financial crisis responsibility fee".
The tax would apply only to financial firms with assets of more than $50bn.
There are reckoned to be about 50 of these institutions - although many did not accept any taxpayer assistance and many others have already paid back what the government lent to them.
'Drag on sector'
In the US, analysts said the fact that the fees levied on banks would be spread out over a decade would diminish their impact.
"It throws some sand into the gears," said Robert Albertson, chief strategist at Sandler O'Neill in New York. "It's one more thing dragging on the sector, but it's spread over 10 years, so it's not so consequential. It's petty theft from bank balance sheets."
The levy comes ahead of the latest reporting season on Wall Street, with banks expected to report record bonuses.
The tax will claw back some of the losses from a $700bn taxpayer bail-out of American banks known as the Troubled Asset Relief Program (Tarp).
It was drawn up in the midst of the financial crisis in 2008, following the collapse of US investment bank Lehman Brothers and multi-billion dollar rescue of insurance giant American International Group (AIG).
It helped stem the crisis by injecting public capital into the biggest US banks and restoring confidence in the banking system.
Posted at 09:16PM Jan 14, 2010 by Kelly Board in The Economy | Comments[0]
300 jobs to go at Orange call centre in Bristol
Mobile phone company Orange has told staff that it is closing a call centre in Bristol with the loss of 300 jobs.
The Communication Workers Union (CWU) said some workers broke down in tears when they were told.
The CWU spokesman said: "People have struggled into work through appalling weather only to be told they are losing their jobs."
Orange said redundancy packages and support in finding alternative work would be available for those affected.
A spokesman for the company said: "As part of our strategy to improve, grow and evolve the company, we are continually looking at ways to ensure we are operating in the most efficient way. As such, we have been reviewing our building strategy and are proposing not to renew the lease for Keypoint, one building on our office campus in Bristol. The affected staff will be relocated to other Orange buildings in Bristol, relevant to the division of the business they work for. However, with no other 'service operation' in Bristol, staff from that division will be offered an opportunity to apply for work and a relocation package in our other service centres across the UK. For those service employees who do not wish to seek roles elsewhere in the business, redundancy packages will be available and employees will receive full support in finding alternative work."
Orange closed the centre for the day as staff were so upset.
The nearest Orange call centre to Bristol is in Plymouth.
Posted at 07:31PM Jan 14, 2010 by Kelly Board in The Economy | Comments[0]
