Citigroup Gets Huge New $38 Billion Bailout, Wiping Out All Of The Taxpayer's "Profits" (Dec. 2009)

business insider ^ | Dec. 16, 2009 | Joe Weisenthal

[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?

[F.J. Mitchell]

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.

[clamper1797]

I wasn’t so lucky

[hennie pennie]

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.

[FromLori]

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

[FromLori]

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

[Toddsterpatriot]

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!

[PMAS]

*

[Toddsterpatriot]

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.

[Vaduz]

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

[Pagey]

bttt

[FromLori]

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

[Toddsterpatriot]

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

[Toddsterpatriot]

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.

[FromLori]

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/

[FromLori]

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

[Toddsterpatriot]

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.

[Toddsterpatriot]

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!

[FromLori]

Fannie and Freddie’s biggest deadbeats

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

[Tunehead54]

4 L8tr bump! ;-)

[Yet_Again]

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.