March, 12, 2010

The banking industry will tell Senate tax writers on Friday they oppose a plan by U.S. President Barack Obama to tax big banks to recoup about $100 billion in bailout costs from Citigroup Inc (C.N), Bank of America Corp (BAC.N) and other institutions.In a meeting scheduled with senior staff of the Senate Finance Committee, bankers, securities industry representatives and others will express their opposition to the tax, said people familiar with the meeting, but not authorized to speak on the record.

The committee, which oversees tax-writing, has been seen as resistant to the idea."We got the strong impression that they don't really want to do this," said a person planning to attend the talks, who was not authorized to be quoted.Still, "the fear is that it has a hefty tag on it and they are always looking for something they can grab" for revenue, this person added.

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