It looks like the fat cat Wall Street Bankers are looking at a legal challenge to Obama’s proposed bank tax:

Wall Street’s main lobbying arm has hired a top Supreme Court litigator to study a possible legal battle against a bank tax proposed by the Obama administration, on the theory that it would be unconstitutional, according to three industry officials briefed on the matter.

Ummm ……… Despite the fact that these guys destroy £7 of wealth for each dollar that they are paid, and the fact that this is intended to collect money to replace those spent under the TARP law, which required such a levy, they still believe themselves to be the masters of the universe, and they are outraged at that Obama has unveiled a modest tax on their liabilities and spoken about them with less than glowing terms.

It’s really kind of whiny, since the tax is modest, and largely geared toward forestalling more punitive measures floating around Congress.

The tax is nominally 15 basis points (0.15%) on liabilities over $50 billion, and it appears to weigh more heavily on investment banks than depositor banks, though the legal distinction was erased when the brokers all became bank holding companies. (See the FAQ from the Treasury Department)

What’s more the tax is profoundly weak tea, as the effective tax is halved, yielding a tax of 7½ basis points, which is well under the 78 basis point advantage in cost of funds that the “too big to fail banks” have over their smaller brethren.

Note also that this only covers the $117 billion or so of the TARP, but when other bailouts are considered, we are approaching $30 trillion in money handed to banks, without a thought of clawing that back.

So they are getting a sweetheart deal, and they are screaming like stuck pigs.

They do not realize how angry people are, and they won’t until people literally start burning down their houses with torches.