Timmy Gives Citigroup a $38 Billion Christmas Present, Says F%^* the Rule of Law

Friday, December 18, 2009 , , , , , 1 Comments

h/t WC Varones


A House subcommittee said Thursday that it will investigate the Treasury Department's decision to change a long-standing law so that Citigroup could keep billions of dollars in tax breaks.

Rep. Dennis J. Kucinich (D-Ohio) called Treasury's action a "farce" and an "outrage" during a hearing Thursday of the domestic policy subcommittee of the House Committee on Oversight and Government Reform. Kucinich, the subcommittee chairman, said that he would demand an explanation from Treasury officials.

"This committee is not going to rest until we've examined this last deal threadbare, until we have spoken to every individual associated with it, examined every communication related to it, with every person that may have had an interest in it, or who may have had some kind of a channel of influence," Kucinich said.

The Internal Revenue Service, an arm of Treasury, ruled last Friday that Citigroup could keep $38 billion in tax breaks that otherwise would decline in value as the government sells its stake in the company. Federal law lets companies shelter profits from taxes in good years based on the amount of losses in previous bad years. But the law restricts the use of past losses if a company changes hands, to discourage profitable companies from buying unprofitable firms to avoid paying taxes.

Congress should be livid but then again they sort of had this coming. They lost the reigns on this thing long ago and let us not forget that Timmy the Tax Cheat comes from the NY Fed and therefore doesn't believe in the all-seeing wisdom of Congress. Fuck it, he's a Fed hack! Congress?! LOL!

Indictments or it didn't happen, aren't tax shelters illegal in the United States? What the fuck do you call this if you won't call it theft?

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


The issue is "CRCO", consolidated return change of ownership. If there is a 50% or greater change in ownership of a corporation within a certain time period, the use of NOLs is restricted. I would have to check the IRS regs to give you the details. I know of no basis for Timmy Boy giving Citigroup an exemption from CRCO.