Obama's US$110b bank tax would hurt economy, says top lobbying group

London

WALL Street's top lobbying group said President Barack Obama's plan to raise US$110 billion over the next decade through a new tax on financial companies could stifle economic growth and make banks less likely to lend.

The proposal released on Saturday would impose a seven-basis-point fee on the liabilities of the nation's biggest banks, investment firms and insurers. The Securities Industry and Financial Markets Association (Sifma) said the fee is an unnecessary attempt to rein in risk on Wall Street, following the approval of the 2010 Dodd-Frank Act.