Banks could be slapped with tax to fund rescues

“But he did not shut the door on tax, no more so than (US President Barack) Obama in Pittsburgh, to a contribution from the financial sector toward the risks it generates, but which is not a day-to-day tax.”

Strauss-Kahn said regulators and governments were now working on two fronts: tougher regulation of banks to prevent future crises, and the levy to fund future bank bailouts if needed, which would limit the cost to taxpayers.

Regulators are drafting stricter rules for banks under the auspices of the Financial Stability Board, another international forum.

If the new regulations are strong and respected enough, the levy on banks will be less necessary, Strauss-Kahn said.