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Citigroup Gets Huge New $38 Billion Bailout, Wiping Out All Of The Taxpayer's "Profits" (Dec. 2009)
business insider ^ | Dec. 16, 2009 | Joe Weisenthal

Posted on 01/31/2011 8:47:30 AM PST by Nachum

The Treasury may have made some silly paper "profit" on its bailout of Citigroup (C) but the taxpayer may not get much of anything.

The Washington Post reports that as part of the bank's TARP payback agreement, it's quietly been given a $38 billion tax break by the IRS. Seriously.

The Internal Revenue Service on Friday issued an exception to long-standing tax rules for the benefit of Citigroup and a few other companies partially owned by the government. As a result, Citigroup will be allowed to retain billions of dollars worth of tax breaks that otherwise would decline in value when the government sells its stake to private investors.

While the Obama administration has said taxpayers are likely to profit from the sale of the Citigroup shares, accounting experts said the lost tax revenue could easily outstrip those profits.

So what specifically happened?

(Excerpt) Read more at businessinsider.com ...


TOPICS: Crime/Corruption; Front Page News; Government; News/Current Events
KEYWORDS: bailout; citigroup; gets; huge

1 posted on 01/31/2011 8:47:38 AM PST by Nachum
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


2 posted on 01/31/2011 8:48:23 AM PST by Nachum (The complete Obama list at www.nachumlist.com)
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To: Nachum

I am proud to say that I helped Barofsky with this report. And yes, I got that blue and gold Treasury coffee cup for my efforts.


3 posted on 01/31/2011 8:49:32 AM PST by whitedog57
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To: Nachum

I’ll believe we got paid back when they put the payout ledger on line, and the receipts.


4 posted on 01/31/2011 8:50:03 AM PST by org.whodat
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To: Nachum

And what point do people say enough?


5 posted on 01/31/2011 8:52:33 AM PST by mewykwistmas ("Politicians are the same all over. They promise to build a bridge even where there is no river. ")
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To: Nachum

The American taxpayer getting skrooed again? Who would have ever thought...


6 posted on 01/31/2011 8:52:51 AM PST by MichaelCorleone (Sarah Palin is America's Margaret Thatcher)
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To: mewykwistmas

Who is John Galt?


7 posted on 01/31/2011 8:53:30 AM PST by proudpapa
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To: Nachum

So what specifically happened?
‘’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’

The taxpayer got bent over and they rammed it home.

That’s what happened.


8 posted on 01/31/2011 8:54:20 AM PST by Venturer
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To: Nachum

Before this Prince Al Waleed’s Citicorp had received $380 billion. POS corrupt bank. It should have been shut down. Total dog s**t corrupt scam. It was decent when John Reed ran it years ago.


9 posted on 01/31/2011 8:54:20 AM PST by Frantzie (Slaves do not have freedom only the illusion of freedom & their cable TV to drool at)
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To: whitedog57
I am proud to say that I helped Barofsky with this report. And yes, I got that blue and gold Treasury coffee cup for my efforts.

I am sad to say that I helped Barofsky pay for this fiasco. And yes, I got that big, huge pile of federal debt for my efforts.

Citi, Bank of America, PNC, and all the other TARP banks must die. I have closed all of my business and personal accounts with any institution connected to TARP, and I refuse even to accept checks drawn on those corrupt banks. The same goes for the auto bailout. I am boycotting GM and Chrysler forever, and I hope that all patriotic Americans will do the same. It is immoral for the Pelosi/Obama Regime (and yes, I know Bush had a hand in that government overreach too) to use our money to bailout their friends, and I will never again do business with any company connected to this corruption.

These companies are dead to me.

10 posted on 01/31/2011 8:54:30 AM PST by Pollster1 (Natural born citizen of the USA, with the birth certificate to prove it)
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To: Nachum

I retired with LOTS of Citi group stock ... I’m working again ... says it all


11 posted on 01/31/2011 8:56:32 AM PST by clamper1797 (Pray for Obama ... Psalms 109:8)
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To: Nachum

sfl


12 posted on 01/31/2011 8:57:39 AM PST by phockthis
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To: Nachum

Neofascists. Great thread. Thanks to all posters.


13 posted on 01/31/2011 8:57:46 AM PST by PGalt
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To: Frantzie

read once that der reader was the lead attorney threatening to sue CITI for discrimination for their reluctance in making loans into “redlined” areas. CITI settled out of court, started making the loans, and the rest is history.


14 posted on 01/31/2011 8:58:19 AM PST by stickywillie
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To: Nachum

Just wait until we wake up to what’s been happening with the POMO.


15 posted on 01/31/2011 8:59:41 AM PST by mojito
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To: Nachum

Am I missing something, this article is dated 2009.


16 posted on 01/31/2011 8:59:41 AM PST by tiredoflaundry (I will not be silenced. Winners do not compromise!)
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To: Nachum

Time to kill the Zombie Banks once and for all.


17 posted on 01/31/2011 9:00:50 AM PST by Qbert ("I seem to smell the stench of appeasement in the air" - Margaret Thatcher)
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To: Nachum

I just saw what my tax bill is going to be, this does not make me very happy.


18 posted on 01/31/2011 9:01:32 AM PST by dfwgator
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To: Nachum
screwed again... Photobucket
19 posted on 01/31/2011 9:02:27 AM PST by baddog 219
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To: clamper1797
I had 100% of my retirement in Citigroup. But they nailed me with so many hidden charges, underperforming commitments and dividend screw-ups, that I sold them out for a private firm. I did that 1 year before the SHTF.

I am extremely happy with that decision! (I should thank them for prompting me to get out, especially when things were earning positive returns.

20 posted on 01/31/2011 9:02:40 AM PST by PSYCHO-FREEP (Patriotic by Proxy! (Cause I'm a nutcase and it's someone Else's' fault!....))
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To: Nachum
Same old s*it over and over again. We are all sick of it but there seems to be nothing we can legally do about it and those who can do something about it, all seemingly are active participants in the gang rape of the tax paying citizens of the USA.

What we vote in keeps turning into what we voted out.

21 posted on 01/31/2011 9:04:21 AM PST by F.J. Mitchell (America is ailin' and the one and ONLY cure is Palin.)
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To: PSYCHO-FREEP

I wasn’t so lucky


22 posted on 01/31/2011 9:06:41 AM PST by clamper1797 (Pray for Obama ... Psalms 109:8)
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To: Nachum; FromLori; SunkenCiv; blam; All
Anyone....

HOW does one determine if any given bank in America is SAFE, not in need of bailouts, and not about to be shut down by the FDIC?

Thanks.

23 posted on 01/31/2011 9:09:37 AM PST by hennie pennie
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To: org.whodat

I’d still like to know who pulled out the $20 Billion from BOA in 2007 to set the downfall in motion. Looks like the commission thing was just another bad joke. They didn’t even get the name.

Figures Jamie Demon is bo’s favorite banker. And it looks like obama’s other backers like lifelong democrat lloyd at goldman sucks and the other TBTF crooks besides Citi will make out fine no prosecutions all’s well that ends with the taxpayers taking it up the rear in obamaland. Just like the GM bailout when the truth came out we lost money I wonder how many more of these IRS deals there are?

Foreclosure losses picked up by taxpayers, investors

http://www.azcentral.com/business/realestate/articles/2011/01/30/20110130foreclosure-losses-picked-up-by-taxpayers.html

Commission outlines Goldman Sachs subprime dilemma in financial crisis

http://www.housingwire.com/2011/01/27/commission-outlines-goldman-sachs-subprime-dilemma-in-financial-crisis

How Goldman Sachs gained from bailout of AIG

http://www.guardian.co.uk/business/2011/jan/27/goldman-sachs-received-aig-bailout-cash

Bank Bail out money

Total Disbursed:
$560,459,325,504

Total Returned:
$234,865,281,772

http://bailout.propublica.org/list

Who withdrew the money from BOA??

http://www.bloomberg.com/news/2011-01-28/wall-street-s-collapse-to-be-mystery-forever-commentary-by-jonathan-weil.html

Unlimited credit for GSEs seen as backdoor bailout

http://www.reuters.com/article/2010/01/05/us-usa-housing-bailout-idUSTRE6044YU20100105


24 posted on 01/31/2011 9:20:25 AM PST by FromLori (FromLori">)
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To: hennie pennie

Some sites to use but honestly the elephant in the room is that the banks have successfully defeated the mark to market rule again. What that means is all the crap they have on their books is being valued at the old inflated levels. So the asset’s they claim are questionable. When you look at an individual bank look how much they have outstanding in loans not just at how many stars they have. Those loans can go bad.

Bank, Thrift and Credit Union Ratings

http://www.bankrate.com/rates/safe-sound/ssPromo.aspx

and BauerFinancial Institutions rated 2-stars or less are placed on its “Troubled and Problematic” report

http://www.bauerfinancial.com

Check http://www.fdic.gov/

Bank regulators also offer information on their sites about enforcement actions. Check the Federal Reserve site at

http://www.federalreserve.gov

An update on America’s riskiest banks

“The results showed Bank of America, Wells Fargo and GMAC as requiring the most amount of capital; in other words, they were expected to generate the most losses.”

http://ftalphaville.ft.com/blog/2011/01/28/472946/an-update-on-americas-riskiest-banks/

Fee

Veribanc (800/44-BANKS). They provide ratings on all U.S. federally insured financial institutions in easy to understand reports.

ABA lauds FASB change of course on mark-to-market accounting

“Mark-to-market accounting won’t be required for loans and other financial assets as proposed last May.

Earlier Tuesday, the Financial Accounting Standards Board reversed course and voted to approve a measure that allows companies to account for assets at their amortized cost rather than their fair value that is based on market prices.”

http://www.housingwire.com/2011/01/25/87494


25 posted on 01/31/2011 9:55:26 AM PST by FromLori (FromLori">)
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To: Nachum
What? Citigroup will get to write off their losses against future profits? Outrageous!

If they get to do what every other firm in the country gets to do, it just shows how unfair the system has become!

LOL!

26 posted on 01/31/2011 10:11:35 AM PST by Toddsterpatriot (Sarcasm, obviously.......)
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To: Nachum

*


27 posted on 01/31/2011 10:15:44 AM PST by PMAS
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To: FromLori
Bank Bail out money

Total Disbursed:
$560,459,325,504

Total Returned:
$234,865,281,772

Now if you back out $88 billion Fannie, $63 billion Freddie, $28 billion GM, $16 billion GMAC, $9 billion Chrysler.....we'd have $121.594 billion still outstanding. $68 billion of which is AIG. Banks only have about $53.6 billion outstanding. Less than 10% of total funds disbursed.

28 posted on 01/31/2011 10:23:11 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Nachum

Tax rules for the benefit of Citigroup and a few other companies partially owned by the government.
Should read government gives self tax brake,yeah that sound legal to me. /s


29 posted on 01/31/2011 11:00:16 AM PST by Vaduz
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To: FromLori

bttt


30 posted on 01/31/2011 12:36:57 PM PST by Pagey (B. Hussein Obama has no experience running anything, except his pedestrian mouth.)
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To: Toddsterpatriot

Good old Todd we can always count on you to try to make the global banks that backed obama and screwed us try to look better.

Barack’s Wall Street Problem is Now America’s

http://www.noquarterusa.net/blog/2008/09/21/baracks-wall-street-problem-is-now-americas/

JPMorgan CEO Jamie Dimon Donates Serious Cash to Democrats

http://www.opensecrets.org/news/2009/07/jpmorgan-ceo-jamie-dimon-donat.html

JPMorgan Chase Asked to Stop Funding ACORN

http://nlpc.org/stories/2009/09/15/jpmorgan-chase-asked-stop-funding-acorn


31 posted on 01/31/2011 12:37:42 PM PST by FromLori (FromLori">)
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To: FromLori

Sorry Lori, just trying to balance your error filled hysteria with some actual facts.


32 posted on 01/31/2011 12:47:06 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: FromLori
http://bailout.propublica.org/list

Thanks, that's a useful list. It looks like only about $263.5 billion (out of $560.5 billion) was actually disbursed to banks. Only $53.5 billion, a bit over 20% remains unpaid. So when someone says the banks have paid back most of their TARP loans, they aren't kidding.

33 posted on 01/31/2011 1:04:59 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

Sure here’s another one so people can really understand and it’s clickable

No, The Big Banks Have Not “Paid Back” Government Bailouts and Subsidies

http://www.zerohedge.com/article/no-big-banks-have-not-paid-back-government-bailouts-and-subsidies

and one so they know how which of these creepy tbtf global bankers support Sharia financing

Shariah Compliant Banks

http://www.shariahfinancewatch.org/blog/shariah-compliant-banks/


34 posted on 01/31/2011 1:12:52 PM PST by FromLori (FromLori">)
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To: Toddsterpatriot

Oh and they might want to learn more about the sweet deal Jamie Demon got

President Obama’s Favorite Banker

http://www.economicpolicyjournal.com/2009/07/president-obamas-favorite-banker.html

and how he makes out on food stamps

The More Americans That Go On Food Stamps The More Money JP Morgan Makes

http://freerepublic.com/focus/f-chat/2660356/posts

and how they foreclose illegally on our troops

2nd UPDATE: JP Morgan Wrongly Foreclosed On Military Families

http://online.wsj.com/article/BT-CO-20110118-715919.html


35 posted on 01/31/2011 1:17:30 PM PST by FromLori (FromLori">)
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To: FromLori
No, The Big Banks Have Not “Paid Back” Government Bailouts and Subsidies

The top 11 banks received $188 billion and repaid $184 billion. Capital One, number 10/11 on the list received and still owes $4 billion. Every other bank on the list, numbers 1 thru 9 and Regions Financial, tied for 10/11, has repaid in full. It's safe to say the big banks have repaid in full. And all the banks combined, have paid back almost 80%.

and one so they know how which of these creepy tbtf global bankers support Sharia financing

Yeah, sharia is terrible. So is ignorance and trying to change the subject.

36 posted on 01/31/2011 1:26:35 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: FromLori
and how he makes out on food stamps

That's funny. We shouldn't use banks to do banking, especially when it's more efficient and will save the government money. Maybe we should emulate Japan and have a bank run by the Post Office. Stick it to Jamie Dimon. You go girl!

37 posted on 01/31/2011 1:30:04 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

Fannie and Freddie’s biggest deadbeats

http://finance.fortune.cnn.com/2011/01/31/fannie-and-freddies-biggest-deadbeats/


38 posted on 01/31/2011 2:13:11 PM PST by FromLori (FromLori">)
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To: FromLori

4 L8tr bump! ;-)


39 posted on 01/31/2011 2:19:00 PM PST by Tunehead54 (Nothing funny here ;-)
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To: Nachum
The Internal Revenue Service on Friday issued an exception to long-standing tax rules for the benefit of Citigroup and a few other companies partially owned by the government.

Again, unsurprising. Fascism never ends well.
40 posted on 01/31/2011 2:36:19 PM PST by Yet_Again
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To: hennie pennie
HOW does one determine if any given bank in America is SAFE, not in need of bailouts, and not about to be shut down by the FDIC?

http://www.bankrate.com/rates/safe-sound/bank-ratings-search.aspx Not sure how accurate the information is, but it's there.
41 posted on 01/31/2011 2:40:27 PM PST by Yet_Again
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To: FromLori

Excellent! You do have the occasional source that isn’t full of errors.


42 posted on 01/31/2011 3:48:05 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

Glad you liked it I have more...

Banks accepted and bundled ‘deficient’ loans
Mortgages rejected by due-diligence firm were lumped in, crisis panel says

http://www.marketwatch.com/story/banks-accepted-rejected-loans-crisis-panel-2011-01-28?reflink=MW_news_stmp


43 posted on 01/31/2011 3:49:59 PM PST by FromLori (FromLori">)
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To: FromLori
Glad you liked it I have more...

That's great. If you stick to the sources without obvious math (and other) errors, I wouldn't spend so much time mocking and correcting your posts.

44 posted on 01/31/2011 3:52:25 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

Secret to Bank’s Comeback: A Rich Uncle Named Sam

http://online.wsj.com/article/SB10001424052748704279704576101823931818868.html


45 posted on 01/31/2011 7:30:20 PM PST by FromLori (FromLori">)
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To: FromLori
Secret to Bank’s Comeback: A Rich Uncle Named Sam FDIC
46 posted on 01/31/2011 9:07:19 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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