What is the legality of the federal government taxing banks......?

Taxes have nothing to do with loans.

Since the government makes the laws, including taxes, it would be legal to add a bank tax to the laws already on the books.

Kinda stupid, as the banks will just pass the taxes on to customers and still make obscene profits anyway.

We need a windfall profits tax on the banks. If they retaliate by increasing fees as the other poster said, we have to fight fire with fire. We move our accounts to community banks or credit unions. We the citizens have to show big business that we won't put up with their business practices any more. We will not get credit cards until their fees come down.

Maybe it is pay back time or just time for banks to feel what it is like to be in the shoes of average Americans.