A proposed financial-transaction tax in Europe could cost U.S. companies as much as $35 billion, according to a report from ICI Global. The potential tax could harm covered repurchase agreements that U.S. funds enter into with banks in France and Germany. "To compensate for the tax, French and German banks would need to pay nearly 50 times as much for seven-day repo funding at current yields," said Shelly Antoniewicz of ICI Global. "Even for repos with longer maturities, investors would be hard pressed to justify an investment."

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