FDIC Proposes Pay-To-Play Program For Prop Trading

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This must be surtax appreciation week in DC. On the heels of the recession busting proposed surtax on high income earners to fund healthcare "reform", the SheBair is set to push for new fees for bank holding companies that engage in prop trading and pretty much everything else that doesn't qualify as traditional lending. To the extent these fees are severe enough and firms scale down or close down targeted areas, the FDIC may wind up actually adding risk to the banking system through the creation of a nation of less diverse, average-sized banks. Between potentially paying an addition 5%+ in taxes and worrying about whether your employer is willing to go along with the FDIC's pay-to-play proposal, it has been a rough week for 7-figure club members working on prop desks.
Bair, Bernanke Want Tougher Curbs on Biggest Banks [Bloomberg]

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