Wall Street May Fight Tax All the Way to Supreme Court

Lobbyists argue that it's unconstitutional to target big banks
By Kevin Spak,  Newser Staff
Posted Jan 18, 2010 8:38 AM CST
Lloyd Blankfein, Jamie Dimon, John Mack, and Brian Moynihan, testify on Capitol Hill, Jan. 13, 2010, before the Financial Crisis Inquiry Commission.   (AP Photo/Pablo Martinez Monsivais)

(Newser) – Wall Street’s main lobbying firm has hired a big-time Supreme Court litigator to look into bringing a federal case against the Obama administration’s proposed big-bank tax, arguing that it is unconstitutional. The group sent an email to legal departments across Wall Street saying that the tax could be challenged because singling out big banks could be considered arbitrary and punitive.

Such a legal challenge would be a new front in the Street’s battle against regulatory reform, but some execs tell the New York Times that they’re worried that fighting it would exacerbate their political and PR woes. But by hiring Carter Phillips as its lawyer, the lobbying firm has showed it’s itching for a fight. Phillips has argued more than 60 cases before the Supreme Court.

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