White House Communications Director Dan Pfeiffer pushed back against criticism of the administration’s new fee on banks in a post on the White House blog today. Pfeiffer singled out an anonymous quote on Politico, attributed to a “senior industry leader,” which alleged that the new bank fee will inhibit lending and undermine economic recovery.“The money to be collected is capital being pulled out of the banking system that could support ten times the amount in new lending,” the senior industry leader told Politico. “That’s because $1 in capital supports $10 or more in lending. So the tax will pull not $90 billion in lending capacity out of the banking system, but $1 trillion in potential lending.”
This is a companion discussion topic for the original entry at https://talkingpointsmemo.com/?p=131908