Jeffrey Lacker, the president of the Federal Reserve Bank of Richmond, sees President Obama's proposal to tax some of the nation's largest and most highly leveraged banks as a move that is motivated more by politics than the economy.
"I don't know of an economic reason why you would do it, rather than tax more broadly," he said, taking questions from audience members after a speech in Richmond, Va., on Friday.
The Obama plan announced, Thursday, aims to recoup costs related to government bailouts of banks and other companies.
The legislation allowing for the bailouts, made through the $700 billion Troubled Asset Relief Program, requires the president to take steps to recoup its costs, administration officials have said.
