TARP is like water on the sand.
Thursday, October 30, 2008 at 11:01PM
Skeptic in Sub-prime Mortgage Melt-down

It was reported today that one-half of the money Treasury is injecting into selected banks in exchange for preferred stock will be paid out in dividends in the next 3 years. Here it is reported that Treasury is quietly issuing rulings—without statutory authority—that give massive tax benefits to banks that use these capital injections to acquire other banks. This includes an illegal benefit to Wells in its acquisition of Wachovia in conflict with its earlier deal to be acquired by Citi.

Update on Monday, November 10, 2008 at 08:10AM by Registered CommenterSkeptic

Other tax rulings of doubtful legality favorable to financial institutions are reported here and here.  Thanks to Christine for the links.

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