February, 06 , 2010

North Dakota's banking industry is crying foul over President Obama's proposed banking regulations, saying the industry is unfairly singled out.The budget proposal released by the administration targets banks Obama calls "too big to fail," the banks that received bailout funding from the government.The White House said a new tax on those banks will reduce the chance of "future risky behavior," while bringing in $90 billion over 10 years.

The tax would be imposed on the nation's 35 largest banks that took relief money, two of which, U.S. Bank and Wells Fargo, are in North Dakota.It's unfair, said Tim Hennessy, regional president for U.S. Bank in Bismarck. The Troubled Asset Relief Program, more commonly referred to as TARP, was passed under the Bush administration and since has been used to bail out insurance companies, the auto industry and, most recently, major banks.

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