Skip to comments.Citigroup Gets Huge New $38 Billion Bailout, Wiping Out All Of The Taxpayer's "Profits" (Dec. 2009)
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 ...
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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’ll believe we got paid back when they put the payout ledger on line, and the receipts.
And what point do people say enough?
The American taxpayer getting skrooed again? Who would have ever thought...
Who is John Galt?
So what specifically happened?
The taxpayer got bent over and they rammed it home.
That’s what happened.
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.
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.
I retired with LOTS of Citi group stock ... I’m working again ... says it all
Neofascists. Great thread. Thanks to all posters.
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.
Just wait until we wake up to what’s been happening with the POMO.
Am I missing something, this article is dated 2009.
Time to kill the Zombie Banks once and for all.
I just saw what my tax bill is going to be, this does not make me very happy.
I am extremely happy with that decision! (I should thank them for prompting me to get out, especially when things were earning positive returns.