Obama seeks shift of regulatory costs to big banks

— -- The Obama administration plans to charge large banks higher fees than small banks to pay for tighter regulation and to fund a consumer financial protection agency.

The proposal, which needs Congress' approval, means banks with assets of more than $10 billion would pay more for "prudential and consumer supervision," while community banks would pay the same as they do today, said Treasury spokesman Andrew Williams in a statement.

Other financial firms, such as mortgage lenders, will be charged fees for the first time to pay for the cost of regulation, including company audits. The plan was welcomed Thursday by small banks but denounced by large ones.

Scott Talbott of the Financial Services Roundtable, which represents big banks, called the administration's proposal "outrageous" and warned that "overtaxing the major players will create competitive inequalities and will hinder the industry and the economy."