Did Citigroup Get a Cushy Break?

(CBS)  As Citigroup began selling new stock to repay $20 billion in borrowed TARP money, the White House acknowledged Wednesday the bank was being let of the hook for billions in taxes.

The IRS waiver allows Citigroup to get up to a $38 billion write off against the money it lost in the crisis. The potential savings: several billion dollars, reports CBS News correspondent Anthony Mason.

"It all seems to be a bit of accounting sleight of hand, where the taxpayer yet again losses with this administration," said Rep. Jeb Hensarling, R-Texas.

White House Defends Citigroup Tax Break

All of the nine of the country's major banks have now announced plans to pay back their TARP loans. Overall, the treasury estimates taxpayers will make a $19 billion profit from interest payments. The White House has been anxious to get the government out of the financial industry and the banks back on their feet.

But analyst Paul Miller said the banks still hold billions of dollars in bad mortgage loans on their books. By one estimate, nearly 7 million mortgages are in trouble and could be headed for foreclosure.

"The balance sheets still have a lot of losses on them and it is going to take a couple of years to fix those losses," Miller said. "So, no, we're not completely out of the woods yet, but we're in a much better condition today than we were a year ago."

That's because the credit markets are moving again. But if mortgage losses were to suddenly surge in the next 18 months, banks could end up looking to Washington for help again.

[anti-global3]

Let them fail. Them going under will not hurt the average American

[stillunbanable]

So citi repays $20billion, but gets a $38billion tax credit. Looks to me like citi just got another $18billion bailout. So are we to be fooled that citi is actually paying the loan back when they are really taking another free handout? How stupid are we supposed to be. This is just Obama putting more icing on a plastic cake.

[rd615333]

The people lose again... More of the same! When will we as a people give notice that we have had it. We motionless have watched our little remaining funds support the fatcats. I guess we will never learn or maybe we are just to idle to respond to this pillage.

[bigoldic]

The real question is what can the community do to create an actual voice that is heard and respected in congress. We dont stand a chance
against high powered lobbyists that often dictate the law more then our
own needs. Unfortunately were a country divided as a people, primarily
due to the republican/democrat divide that pins us against eachother and
not against the actual government which is were our issues are based.
Only if we put our political, and ethinic difference aside can we actually focus on the real culprit.

[nearl451]

It maybe that Obama is more Republican than Clinton was.

[robinsont2]

He's just out in left field all on his own.

[cbsblogger]

They kept the costs to taxpayers and the plan secret too. I've come to the conclusion that Obama is a Wall Street man, and not for average Americans and there is a huge difference and sadly I voted for him.

[askagain]

Every politician favors different groups. President Obama speaks as if he is one of the people. His actions tell a different story. Keep in mind that he will need to raise a lot of money for his next presidential campaign. Where do you think the money will come from? From you or I? It will come from labor unions, health insurance companies, other industries, and special interest groups. The taxpayers are simply the pawns who subsidize all of this. President Obama was simply more convincing than his opponents.

[starving1968-1]

by 2012EOD December 16, 2009 8:31 PM EST
Would the MSM let Bush get away with this?






Bush did it last year with Wells Fargo, and we just heard about it with THIS STORY, THIS MORNING!!!

[starving1968-1]

"The White House has been anxious to get the government out of the financial industry and the banks back on their feet."






The conservatives cry about "Obama owns part of the banking industry", because he was forced to bail them out.

Then he tries to cut them loose, and the conservatives cry about that.


Yet another example of, "We're gonna cry no matter what Obama does!!"

That's real mature.

[luadda22]

Nope, all he needs to do is has congress implement the "Fair Tax" and quit spending money.

[luadda22]

"the treasury estimates taxpayers will make a $19 billion profit from interest payments". Does this mean that Obama will announce a new $19 billion stimulus program?

[bubbadubba]

"Did Citigroup Get a Cushy Break?"

Is the Pope Catholic?
Another idiot headline.

[2012EOD]

Would the MSM let Bush get away with this?