Financial Services Committee Update

January 28, 2010
Staff Contact: Ken Pokalsky


In a January 26th letter, Business Council President/CEO Kenneth Adams urged New York’s Congressional Delegation to oppose the Obama Administration’s proposed “Financial Crisis Recovery Fee” and find meaningful and sustainable actions to allow Wall Street to recover.
Below you will find the text of Mr. Adams’ letter to the delegation.

The Business Council of New York State, representing the interests of nearly 3,000 businesses and organizations, is deeply concerned by the Obama Administration’s proposed “Financial Crisis Responsibility Fee” (FCRF) which would impose a .15 percent tax on the “covered liabilities” of banks and other financial institutions.

We urge our Congressional delegation to oppose the FCRF and find meaningful and sustainable actions to allow Wall Street to recover. The financial services industry and federal government must cooperate and implement innovative new regulations and protocols to allow our markets to function with the increased transparency and efficiency needed to keep the United States of America as the financial center of the world.

It is essential that the federal government do all it can to encourage the credit markets to allow worthy private-sector businesses access to capital because that is the only way employment and investment conditions will markedly improve. A punitive charge on our leading financial institutions’ ability to leverage capital for investment will act as a new and significant drag on our State’s and Nation’s economic recovery.

The Administration and our federal representatives should focus on collecting the outstanding TARP funds, plus interest, rather than jeopardizing the recipients’ ability for repayment. Nearly two-thirds of the Troubled Asset Relief Program (TARP) recipients have abided by the law by repaying, with interest, the taxpayer funding. According to the Treasury Department, the TARP program will earn a significant profit through dividends, interest and early repayments.

At a time when New York’s most vital industry is just pulling back from the precipice, a tax hike of at least $90 billion dollars is the very worst message that the federal government can send.