Insurers (that didn't take TARP money) Would Owe Under Proposed U.S. Financial Tax

Wall Street Journal ^ | January 18, 2010 | Lavonne Kuykendall

[reaganaut1]

A handful of large insurance companies, most of which turned down government bailout funds, would likely owe money under the proposed Financial Crisis Responsibility tax.

The proposed tax, unveiled Thursday by President Barack Obama, would amount to 0.15% of total assets minus high-quality capital, such as common stock, and disclosed and retained earnings. Insurance-policy reserves would be untaxed, being already subject to federal fees, according to the White House, but analysts and insurers note that some details are yet to be clarified. The fee must be approved by lawmakers.

Quite a few insurers qualify for the tax, according to analysts. According to a fact sheet from the Obama administration, the fee would cover large insurance and other companies that own insured depository institutions.

...

Prudential and MetLife, two insurers that declined funds from the Trouble Asset Relief Program, would owe significantly more [than several TARP recipients], according to Credit Suisse and Citigroup. Prudential would owe about $85.2 million, and MetLife just over $81.5 million, Credit Suisse said; Citigroup pegged Prudential at $84 million, and MetLife at $97 million.

Prudential spokesman Bob DeFillippo said the company was working on understanding the proposal and didn't yet have a comment.

A MetLife spokesman agreed with the assessment that the company is included in the current proposal of companies that would owe the tax but said the company is still looking at the details of the proposed tax.

Allstate would owe $34.1 million, according to Credit Suisse. A spokesman said, "At this point, we don't have enough information to determine whether or to what extent a company like ours, which did not accept TARP funds and whose assets primarily are funds held on behalf of contract holders or insurance policy reserves, would be affected by this fee."

[reaganaut1]

The Liar-in-Chief has advocated the bank tax saying "We want our money back", but most Wall St recipients of TARP have repaid the money, and the bank tax is hitting companies that never took TARP money, while excluding companies like GM, Fannie, and Freddie that will cost taxpayers hundreds of billions of dollars.

[Nachum]

The list, ping

[BlueNgold]

Does anyone else think this is INTENTIONALLY structured to target those who either thumbed their nose at TARP or insisted on their right to pay back the force-fed loans early.

This is ‘payback’ for those daring to stand against The One.

Of course, it makes all kinds of sense to punish the profitable and financially sound institutions who continue to operate and, you know, employ people...

[BitWielder1]

Valerie Jarret (one of 0's senior mentors and advisers) was on Fox and Friends last Thursday (I think) morning and she said that all financial institutions are "collectively responsible" for the mess they put us in.
Apparently regardless of any specific wrongdoing or not.
I hope they remember that when the BHO administration is put on trial and they all start pointing fingers...

[6SJ7]

Valerie Jarret (one of 0's senior mentors and advisers) was on Fox and Friends last Thursday (I think) morning and she said that all financial institutions are "collectively responsible" for the mess they put us in.

That statement, "collectively responsible" makes Jarret a self-identified marxist.

[FromLori]

Don’t worry obama’s favorite banker said none of them will be paying it they will pass it onto us!

Remember BO said bailint out the banks was his greatest accomplishment and when you look into the BRIBES er I mean donations they gave him it is little wonder.

http://www.washingtonexaminer.com/politics/Obama_s-pick-for-man-of-the-year_-George-W_-Bush-8677553-79997637.html

http://www.noquarterusa.net/blog/2008/09/21/baracks-wall-street-problem-is-now-americas/

Obama’s Big Sellout

http://www.rollingstone.com/politics/story/31234647/obamas_big_sellout

HEAVY HITTERS
Goldman Sachs

http://www.opensecrets.org/orgs/summary.php?id=D000000085

JPMorgan CEO Jamie Dimon Donates Serious Cash to Democrats

http://www.opensecrets.org/news/2009/07/jpmorgan-ceo-jamie-dimon-donat.html

http://www.economicpolicyjournal.com/2009/07/president-obamas-favorite-banker.html

No way I would defend this DEN OF VIPORS and the worry about BO taxing the banks what a complete joke

Obama’s Grand Scheme “Tax YOU to Punish the Banks”

Let’s start with a point made by Jamie Dimon, CEO at JP Morgan Chase:

“Using tax policy to punish people is a bad idea...All businesses tend to pass their costs on to customers.”

http://stossel.blogs.foxbusiness.com/2010/01/14/2303/

See obama’s favorite banker TOLD YOU who would be paying the fee! YOU

[Sir Francis Dashwood]

There is more to this story and it is actually quite simple...

The largest generational transfer of wealth is about to occur and these people want to steal it...

[BitWielder1]

That statement, "collectively responsible" makes Jarret a self-identified marxist.

Yep. You got it!

[EBH]

So he makes bank fee’s go up

He makes loan fee’s go up

And he finds a way to force insurance companies to raise their rates too....

The he collapses them all like dominoes.

[my_pointy_head_is_sharp]

In other words, they’re going to beat the money out of them with a stick, no matter what they did.

[Lurker]

When you see that trading is done, not by consent, but by compulsion--when you see that in order to produce, you need to obtain permission from men who produce nothing--when you see that money is flowing to those who deal, not in goods, but in favors--when you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you--when you see corruption being rewarded and honesty becoming a self-sacrifice--you may know that your society is doomed. Money is so noble a medium that is does not compete with guns and it does not make terms with brutality. It will not permit a country to survive as half-property, half-loot. Ayn Rand, Atlas Shrugged.