UK banks face Obama tax bill of £6.7bn

[Frank]

President Barack Obama’s banking levy could result in a bill of almost £7bn for the UK’s three biggest banks.

It is reported in The Daily Telegraph that Barclays, HSBC, and Royal Bank of Scotland will face a bill of $11bn (£6.7bn) following President Obama’s decision to recoup some of the money paid to US banks during the financial crisis.

The ‘Obama tax’, formally known as the Financial Crisis Responsibility fee, will reportedly bring in revenues for the US government of between $90bn (£55bn) and $117bn (£72bn).

Because of the size of their US operations, Barclays, HSBC, and Barclays all stand to be hit by the proposed levy.

Barclays is believed to face a levy of $680m (£417m) a year for the next ten years, while HSBC is looking at an annual bill of $380m (£233m) and RBS a levy of $90m (£55bn).