WASHINGTON (MarketWatch) -- President Barack Obama will propose a special 10-year fee on large financial companies to repay taxpayers for the "extraordinary" assistance they got to keep the economy from collapsing in late 2008, a senior administration official said Wednesday.

Obama is expected to announce his proposal Thursday morning.

The assessment on excess liabilities at big firms is designed to raise about $90 billion over 10 years. It would remain in place for at least 10 years, or until all losses from the Troubled Asset Relief Program were repaid.

Most of the largest financial companies have repaid their TARP funds, with interest. Some of the TARP funds, however, may never be repaid, budget analysts believe.

Paying the special fee is "the least they can do," the administration official said, after Washington rescued these companies from the brink of disaster.

Although the biggest firms have now recovered and are profitable enough to pay staggering levels of bonuses to their employees, taxpayers are still suffering from high unemployment and deep economic distress, the official said.

The stated goal of the "Financial Crisis Responsibility Fee" is to make sure the taxpayers don't have to pay a penny to bail out the banks that nearly brought down the economy. The TARP legislation passed in October 2008 includes a provision allowing the government to be repaid in full.

The TARP law gives the president until 2013 to come up with a repayment plan, but Obama decided not to wait.

With tough congressional elections coming up and populist anger at the bailouts still at a boil, Obama wants it to be clear which side he's on. He doesn't want to be seen as a patsy for the Wall Street firms that profited immensely from Washington's iron-clad guarantees and cheap money.
Fifty companies

The special assessment would apply to about 50 companies with assets more than $50 billion -- including banks, bank holding companies, thrifts, insurance companies, and broker-dealers. The fee would not apply to hedge funds or mutual funds

http://www.marketwatch.com/story/oba...ies-2010-01-14