Financial Watch

President Barack Obama’s plan to tax financial institutions to recoup funds spent during the government’s bailout of financial firms received tepid enthusiasm from the top tax writer in the U.S. Senate.

Senator Max Baucus, the conservative-leaning Democrat who heads the Senate Finance Committee said on Tuesday he will hold a series of hearings to examine the plan.

But he also said good news on the government’s recouping of its bailout investments may cast doubt on the need for the funds Obama wants to raise.

“We need to learn whether banks will pass it on to consumers, and how it might affect lending to small businesses,” Baucus said.