Comments on: Citi TARP Repayment is a Tax Dodge http://www.ritholtz.com/blog/2009/12/citi-tarp-repayment-is-a-tax-dodge/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 21:16:44 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: steveaustin http://www.ritholtz.com/blog/2009/12/citi-tarp-repayment-is-a-tax-dodge/comment-page-1/#comment-242934 steveaustin Fri, 18 Dec 2009 23:51:28 +0000 http://www.ritholtz.com/blog/?p=46375#comment-242934 to ThinkingN, its good to have a contrary voice but i think you are wrong. the govt gave citi $45b. $20 was a loan and $25b was for 34% equity. the $20b that citi are repaying is the loan, therefore there should not be any tax break for a change in ownership since the govt still have 34%. yep there will be another crisis to come after this one because stuff has just been swept from one place to another, namely the toxic assets bank. but govts can print money and inflate their way out of it, although its going to take some years of real gdp stagnation before that happens. i knew obama made a mistake when he appointed geitner. the dude hadn't even paid his own tax bill! and all this after obama ran on a platform of honest accountability. don't expect geitner to last the full term. to ThinkingN,

its good to have a contrary voice but i think you are wrong.

the govt gave citi $45b. $20 was a loan and $25b was for 34% equity.

the $20b that citi are repaying is the loan, therefore there should not be any tax break for a change in ownership since the govt still have 34%.

yep there will be another crisis to come after this one because stuff has just been swept from one place to another, namely the toxic assets bank. but govts can print money and inflate their way out of it, although its going to take some years of real gdp stagnation before that happens.

i knew obama made a mistake when he appointed geitner. the dude hadn’t even paid his own tax bill! and all this after obama ran on a platform of honest accountability.

don’t expect geitner to last the full term.

]]> By: Did you get your $38 billion tax break today? Citigroup did. Yet the IRS frisks a 20K a year single mom. | The Layoff List http://www.ritholtz.com/blog/2009/12/citi-tarp-repayment-is-a-tax-dodge/comment-page-1/#comment-242800 Did you get your $38 billion tax break today? Citigroup did. Yet the IRS frisks a 20K a year single mom. | The Layoff List Fri, 18 Dec 2009 17:11:45 +0000 http://www.ritholtz.com/blog/?p=46375#comment-242800 [...] via Citi TARP Repayment is a Tax Dodge | The Big Picture. [...] [...] via Citi TARP Repayment is a Tax Dodge | The Big Picture. [...]

]]> By: Citibank: A Triple Dose of Trouble | Stocks and Sectors http://www.ritholtz.com/blog/2009/12/citi-tarp-repayment-is-a-tax-dodge/comment-page-1/#comment-242633 Citibank: A Triple Dose of Trouble | Stocks and Sectors Thu, 17 Dec 2009 22:07:25 +0000 http://www.ritholtz.com/blog/?p=46375#comment-242633 [...] the TAXES on $38B, which, assuming a roughly 35% tax rate for Citibank comes to about $13B (see Ritholtz and Denninger for more on this story). The next major Citibank story yesterday was that the Abu [...] [...] the TAXES on $38B, which, assuming a roughly 35% tax rate for Citibank comes to about $13B (see Ritholtz and Denninger for more on this story). The next major Citibank story yesterday was that the Abu [...]

]]> By: 2009 — A Year We Will Live To Regret :: ASPO-USA: Association for the Study of Peak Oil and Gas http://www.ritholtz.com/blog/2009/12/citi-tarp-repayment-is-a-tax-dodge/comment-page-1/#comment-242483 2009 — A Year We Will Live To Regret :: ASPO-USA: Association for the Study of Peak Oil and Gas Thu, 17 Dec 2009 16:17:09 +0000 http://www.ritholtz.com/blog/?p=46375#comment-242483 [...] example that just came to light. Based on a Washington Post story, Barry Ritholzt reports that the Citigroup TARP Repayment is A Tax Dodge— The ongoing transfer of wealth from the middle class to the top 1% continues unabated. The [...] [...] example that just came to light. Based on a Washington Post story, Barry Ritholzt reports that the Citigroup TARP Repayment is A Tax Dodge— The ongoing transfer of wealth from the middle class to the top 1% continues unabated. The [...]

]]> By: graspthemarket http://www.ritholtz.com/blog/2009/12/citi-tarp-repayment-is-a-tax-dodge/comment-page-1/#comment-242339 graspthemarket Thu, 17 Dec 2009 02:23:55 +0000 http://www.ritholtz.com/blog/?p=46375#comment-242339 Since it seems that any government for any reason can change the rules of the game, I’m going to work on getting my mortgage waived tonight in a letter to my bank: “Dear Bank, I was thinking that my mortgage shouldn’t be a mortgage. I think it should be more like document with some suggestions for terms of payment. I’m not sure if my mortgage fits my overall lifestyle right now. And since it seems like you can change your rules, I would like to change mine. If you don’t like that idea, maybe we can compromise on another? I think that we can both solidly agree that my mortgage is “just” a few pieces of paper with words on it, and we’ll leave it at that. Please consider my request because it would make my life easier. Thanks for your time.” Since it seems that any government for any reason can change the rules of the game, I’m going to work on getting my mortgage waived tonight in a letter to my bank:

“Dear Bank, I was thinking that my mortgage shouldn’t be a mortgage. I think it should be more like document with some suggestions for terms of payment. I’m not sure if my mortgage fits my overall lifestyle right now. And since it seems like you can change your rules, I would like to change mine. If you don’t like that idea, maybe we can compromise on another? I think that we can both solidly agree that my mortgage is “just” a few pieces of paper with words on it, and we’ll leave it at that. Please consider my request because it would make my life easier. Thanks for your time.”

]]> By: jc http://www.ritholtz.com/blog/2009/12/citi-tarp-repayment-is-a-tax-dodge/comment-page-1/#comment-242336 jc Thu, 17 Dec 2009 01:52:45 +0000 http://www.ritholtz.com/blog/?p=46375#comment-242336 Did T announce their decision before the deal was priced? Did they do a plan B pricing with Trasury selling now? Did T announce their decision before the deal was priced? Did they do a plan B pricing with Trasury selling now?

]]> By: jc http://www.ritholtz.com/blog/2009/12/citi-tarp-repayment-is-a-tax-dodge/comment-page-1/#comment-242335 jc Thu, 17 Dec 2009 01:27:31 +0000 http://www.ritholtz.com/blog/?p=46375#comment-242335 If T had sold their CITI holdings the price would have cratered immediately, instead they'll be sitiing on a big paper loss for a loooong time. How long til CITI comes back for more USBucks? If T had sold their CITI holdings the price would have cratered immediately, instead they’ll be sitiing on a big paper loss for a loooong time. How long til CITI comes back for more USBucks?

]]> By: Vermont Trader http://www.ritholtz.com/blog/2009/12/citi-tarp-repayment-is-a-tax-dodge/comment-page-1/#comment-242334 Vermont Trader Thu, 17 Dec 2009 01:11:46 +0000 http://www.ritholtz.com/blog/?p=46375#comment-242334 here is the best part... the C deal priced tonight at $3.15... the US treasury decided not to sell their shares in the end... why? b/c the government bought in at $3.25 so much for those paper profits.. thanks for the tax break.. YOU COULDN'T MAKE THIS STUFF UP! here is the best part…

the C deal priced tonight at $3.15…

the US treasury decided not to sell their shares in the end… why? b/c the government bought in at $3.25

so much for those paper profits.. thanks for the tax break..

YOU COULDN’T MAKE THIS STUFF UP!

]]> By: Marc P http://www.ritholtz.com/blog/2009/12/citi-tarp-repayment-is-a-tax-dodge/comment-page-1/#comment-242330 Marc P Thu, 17 Dec 2009 00:21:06 +0000 http://www.ritholtz.com/blog/?p=46375#comment-242330 What is most troubling to me is that one of the foundations of the American legal system is equal application of the law. Once a government starts making specific laws or exceptions for specific people then the rule of law is destroyed. This is a matter of fundamental fairness, and that is why the concept is enshrined in our Constitution. This obviously isn't the first example, or the most egregious. For that I would cite the decision to let five banks, only five, use capital leverage up to 40:1 while all other banks were restricted. A slippery slope, abetted by millions of lobbying dollars, and we become a different country. What is most troubling to me is that one of the foundations of the American legal system is equal application of the law. Once a government starts making specific laws or exceptions for specific people then the rule of law is destroyed. This is a matter of fundamental fairness, and that is why the concept is enshrined in our Constitution.

This obviously isn’t the first example, or the most egregious. For that I would cite the decision to let five banks, only five, use capital leverage up to 40:1 while all other banks were restricted.

A slippery slope, abetted by millions of lobbying dollars, and we become a different country.

]]> By: jpmist http://www.ritholtz.com/blog/2009/12/citi-tarp-repayment-is-a-tax-dodge/comment-page-1/#comment-242256 jpmist Wed, 16 Dec 2009 17:52:53 +0000 http://www.ritholtz.com/blog/?p=46375#comment-242256 Let me see if I have this straight - our Federal Government, having taken an ownership position in a public corporation, Citibank, now gives Citi a specific $40 billion tax break so it can keep it's balance sheet healthy? Yikes! Like we didn't see that one coming. . . How soon do I get my dividend check from Citi? Let me see if I have this straight – our Federal Government, having taken an ownership position in a public corporation, Citibank, now gives Citi a specific $40 billion tax break so it can keep it’s balance sheet healthy? Yikes! Like we didn’t see that one coming. . .

How soon do I get my dividend check from Citi?

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