Comments on: U.S. forfeiting billions in future taxes to let Citi repay TARP http://www.creditwritedowns.com/2009/12/u-s-forfeiting-billions-in-future-taxes-to-let-citi-repay-tarp.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: kfizzle http://www.creditwritedowns.com/2009/12/u-s-forfeiting-billions-in-future-taxes-to-let-citi-repay-tarp.html#comment-57792 kfizzle Wed, 16 Dec 2009 19:45:00 +0000 http://www.creditwritedowns.com/2009/12/u-s-forfeiting-billions-in-future-taxes-to-let-citi-repay-tarp.html#comment-57792 Yeah, I agree wholeheartedly on that. It appears to be shady on its face from a legal standpoint. I just despise politicians in every way possible, so I am ambivalent to that point, I guess, lol. Yeah, I agree wholeheartedly on that. It appears to be shady on its face from a legal standpoint. I just despise politicians in every way possible, so I am ambivalent to that point, I guess, lol.

]]> By: Edward Harrison http://www.creditwritedowns.com/2009/12/u-s-forfeiting-billions-in-future-taxes-to-let-citi-repay-tarp.html#comment-57791 Edward Harrison Wed, 16 Dec 2009 19:33:00 +0000 http://www.creditwritedowns.com/2009/12/u-s-forfeiting-billions-in-future-taxes-to-let-citi-repay-tarp.html#comment-57791 I agree that the WFC/Wachovia deal was more problematic because of the tax treatment gifting WFC billions but Congress has since rescinded this law and stripped the executive branch of its ability to make this kind of determination. My understanding is that Treasury claims this action is legacied in as it is part and parcel of the TARP fund distribution which predates the Congressional law. But the change of control happened when the pref shares were converted to common and that is after the old law went back into effect. Essentially, this looks to be illegal - irrespective of whether it has better optics than WFC/Wachovia. I agree that the WFC/Wachovia deal was more problematic because of the tax treatment gifting WFC billions but Congress has since rescinded this law and stripped the executive branch of its ability to make this kind of determination.

My understanding is that Treasury claims this action is legacied in as it is part and parcel of the TARP fund distribution which predates the Congressional law. But the change of control happened when the pref shares were converted to common and that is after the old law went back into effect.

Essentially, this looks to be illegal – irrespective of whether it has better optics than WFC/Wachovia.

]]> By: kfizzle http://www.creditwritedowns.com/2009/12/u-s-forfeiting-billions-in-future-taxes-to-let-citi-repay-tarp.html#comment-57787 kfizzle Wed, 16 Dec 2009 18:01:00 +0000 http://www.creditwritedowns.com/2009/12/u-s-forfeiting-billions-in-future-taxes-to-let-citi-repay-tarp.html#comment-57787 I thought the WFC/Wachovia thing was terrible, because the law was in place specifically to prevent that from happening. I don't see why this is an issue with Citigroup though, it is clearly not a corporate raider issue. I thought the WFC/Wachovia thing was terrible, because the law was in place specifically to prevent that from happening. I don’t see why this is an issue with Citigroup though, it is clearly not a corporate raider issue.

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