Financial Crisis Responsibility Fee

DEFINITION of 'Financial Crisis Responsibility Fee'

A tax proposed in 2010 to be levied on financial firms that received money from the Troubled Asset Relief Program (TARP). The Financial Crisis Responsibility Fee would continue to be used until the United States recoups the costs from stabilizing Wall Street during the 2007-2010 financial crisis.

BREAKING DOWN 'Financial Crisis Responsibility Fee'

The Financial Crisis Responsibility Fee is designed to be levied on the highly-leveraged firms considered to be at the root of the 2007-2010 financial crisis, and will mostly likely affect larger financial firms.

RELATED TERMS
  1. Financial Crisis

    A situation in which the value of financial institutions or assets ...
  2. TARP Bonuses

    A buzzword coined by the financial media during the financial ...
  3. Troubled Asset Relief Program - ...

    A government program created for the establishment and management ...
  4. Bank Levy

    1) A type of taxation system on financial institutions, in which ...
  5. Levy

    The legal seizure of property to satisfy a debt. In the U.S., ...
  6. Impose

    The act of placing a fee, levy, tax or charge on an asset or ...
Related Articles
  1. Economics

    What is a Financial Crisis?

    A financial crisis is a situation in which the values of assets drop rapidly.
  2. Credit & Loans

    Credit Crisis: Introduction

    By Brian PerryThe events of the 2008 credit crisis and their consequences will shape the investment landscape for decades to come. Therefore, investors who wish to be successful need to have ...
  3. Personal Finance

    Banks Repay Their TARP Loans

    It's been a tough year for the broad economy, but the fact that we've emerged from the brink of economic collapse gives us plenty to be grateful for.
  4. Insurance

    Riding The Market Bubble: Don't Try This At Home

    Riding the bubble takes timing, a clear understanding of the market and, most of all, a lot of luck.
  5. Economics

    3 Financial Crises in the 21st Century

    Take a look at several of the most prominent financial crises of the 21st century, and understand why the Great Recession was a truly remarkable contraction.
  6. Entrepreneurship

    Crisis Management Strategies For Business Owners

    When a PR problem arises, your company will be judged on how you handle it. Are you ready?
  7. Credit & Loans

    Credit Crisis: Government Response

    By Brian PerryThe credit crisis has represented the gravest threat to the global financial system since the 1930s. Fortunately, policymakers have been proactive in their efforts to mitigate the ...
  8. Credit & Loans

    Credit Crisis: Historical Crises

    By Brian PerryThis chapter will provide an overview of historical financial crises and then explore the similarities between those crises and the 2008 credit crisis. An understanding of the common ...
  9. Personal Finance

    Are Financial Advisor Fees Too High?

    Fees charged by financial advisors run the gamut. Are you getting a fair deal or paying too much?
  10. Budgeting

    Market Crashes: Housing Bubble and Credit Crisis (2007-2009)

    When: 2007-2009Where: Housing centered in the United States and Britain; Credit crisis occurred around the world The amount the market declined from peak to bottom: The S&P 500 declined ...
RELATED FAQS
  1. How does TARP affect the economy?

    TARP - or the Troubled Asset Relief Program - is a government program created in response to the subprime mortgage crisis ... Read Answer >>
  2. What are the major laws (acts) regulating financial institutions that were created ...

    Read about the major federal responses to the financial crisis of 2008, such as the Dodd-Frank Wall Street Reform Act and ... Read Answer >>
  3. How did the financial crisis affect the oil and gas sector?

    Learn how the financial crisis affected the oil and gas sector. The financial crisis led to a contraction in economic activity ... Read Answer >>
  4. How did the financial crisis affect the banking sector?

    Learn how the financial crisis impacted the U.S. and global banking sectors both immediately and with far reaching long-term ... Read Answer >>
  5. How did moral hazard contribute to the financial crisis of 2008?

    Learn about moral hazard, how it can affect outcomes and how it contributed to the conditions that led to the 2008 financial ... Read Answer >>
  6. What is the Dodd-Frank Act? How does it affect me?

    The Dodd-Frank Wall Street Reform and Consumer Protection Act is a massive piece of financial reform legislation passed by ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center