Finance could look at bank tax in April

Finance members have been put on notice that hearings could begin after lawmakers return from the Easter recess, lobbyists and congressional staffers told The Hill. 

The panel is seeking ways to turn President Barack ObamaBarack Hussein ObamaHow Obama just endorsed Trump The truth behind Biden's 'you ain't black' gaffe Trump's needless nastiness and cruelty will catch up with him MORE's call for a tax on banks that engage in risky behavior into legislation. It's unclear what shape the tax would take, though staff have talked about a tax that would be applied to a bank's income, lobbyists and staffers said.

The Finance hearings will coincide with Senate Banking Committee Chairman Chris Dodd's (D-Conn.) attempt to move legislation revamping the country's financial sector on the Senate floor.


Dodd's proposal includes an Orderly Liquidation Fund that raises $50 billion by placing a fee on larger banks. The proceeds would be used to unwind an institution if another financial meltdown occurred. 

Dodd's provision could hamper Baucus' ability to create a bank tax as lawmakers may not be keen on placing both a fee and levy on financial institutions to dissuade them from making risky investments, lobbyists said.  

Baucus and Dodd so far have not coordinated efforts to create a bank tax, but  congressional staffers and lobbyists told The Hill that they would not be surprised if senators tried to add a bank tax to Dodd's reform bill when it is considered on the floor.  

In the House, acting Ways and Means Chairman Sandy Levin (D-Mich.) is expected to begin discussions on a bank tax after the recess. It is unclear if those talks will lead to any hearings.