Banks and hedge funds could face up to $20 billion in fees in the next five years to pay for an overhaul of Wall Street, a key lawmaker said Wednesday.
Rep. Barney Frank (D-Mass.) told reporters that large banks and hedge funds could face a fee of, "$3 to $4 billion a year for four to five years." That would range from $12 billion on the low end to $20 billion on the high end. Lawmakers have yet to release the details of the fee provision.
Frank said the assessment would help cover the cost of a 2,000-page effort to remake financial regulations. He said the costs of the overall bill would be significantly less than $30 billion and that several of the bill's provisions would also help cover the cost.
Earlier, Frank said a fee could fall on banks with more than $50 billion in assets and hedge funds with more than $10 billion in assets. When he mentioned those terms, he was referring to a provision to help pay for the costs of $4 billion in housing aid programs that are strongly supported by Frank and members of the Congressional Black Caucus (CBC).