Taxpayers to make $12B on Citigroup bailout - PowerStrokeNation : Ford Powerstroke Diesel Forum
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post #1 of 32 (permalink) Old 12-07-2010, 01:05 PM Thread Starter
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Thumbs up Taxpayers to make $12B on Citigroup bailout

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WASHINGTON – After all is said and done, taxpayers will make a $12 billion profit on the government's $45 billion bailout of Citigroup.

The Treasury Department said late Monday that it had struck a deal to sell its remaining holdings in Citigroup common stock, about 2.4 billion shares. With the proceeds of the sale, priced at $4.35 a share, the government will have realized $57 billion on its bailout package for the big bank.

"By selling all the remaining Citigroup shares today, we had an opportunity to lock in substantial profits for the taxpayer and avoid future risk," said Tim Massad, the Treasury official who heads up the bailout program.

Citigroup received $45 billion in taxpayer support late in 2008 in one of the largest bailouts undertaken by the government as it struggled to contain the worst financial crisis to hit the country since the 1930s.

The bailout of Citigroup and other large banks was begun under the Republican administration of George W. Bush but turned into a major political liability for President Barack Obama in last month's congressional elections.

The administration has insisted that the bailouts were needed to prevent an even deeper recession. They said the cost of the bailouts has been falling as Citigroup and other rescued institutions pay back their government loans.

Not only that, but our losses on TARP are going down.

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The latest estimate from the Congressional Budget Office in late November was that the $700 billion Troubled Asset Relief Program would end up costing the government $25 billion, down from an August CBO estimate of $66 billion.

$25 Billion to avert the collapse of our entire financial industry and everything they touch in our economy...........sounds like the buy of a lifetime to me.

Good job George Bush.



Too bad the average American citizen just listens to political rhetoric, instead of understanding what the actual ramifications most likely would have been had we not done it.
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Republicans took control of the House and gained six seats in the Senate by capitalizing on voter anger over the bailouts and soaring federal budget deficits.
.

Never have so many politicians, screwed so many Americans...just to make one black person lose his job.
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post #2 of 32 (permalink) Old 12-07-2010, 01:18 PM
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Re: Taxpayers to make $12B on Citigroup bailout

I've said it before and I'll say it again.....until we know ALL of the backroom deals we have no way of knowing just how much this did or did not cost us.


Tax Break Negates U.S. Profit from Citi's TARP Repayment - Money Morning

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The U.S. government is forfeiting billions of dollars in tax revenue collections from Citigroup Inc. (NYSE: C) that could be worth more than the profit reaped from the bank's repayment of bailout funds.

The U.S. Treasury's Internal Revenue Service (IRS) on Friday made an exception to longtime tax rules that will enable Citi to avoid taxes on its next $38 billion in profits - the value of the bank's past losses at the end of the third quarter, The Washington Post reported.

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post #3 of 32 (permalink) Old 12-07-2010, 01:34 PM Thread Starter
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Re: Taxpayers to make $12B on Citigroup bailout

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I've said it before and I'll say it again.....until we know ALL of the backroom deals we have no way of knowing just how much this did or did not cost us.

Tax Break Negates U.S. Profit from Citi's TARP Repayment - Money Morning
Nowhere in that article (or the additional links at the bottom) did I see the value of the tax breaks.

It says "Billions"............... but doesn't say if it might be $2B or $50B.

It does mention that they are exempt on $38B, so if we take a tax rate of 30% on that.........it comes out to a loss of $11.4Billion in taxes.

That would still be a break even, on saving what is a big cog in our financial system.

Which still sounds like a good deal to me.


.

Never have so many politicians, screwed so many Americans...just to make one black person lose his job.
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post #4 of 32 (permalink) Old 12-07-2010, 01:39 PM
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Re: Taxpayers to make $12B on Citigroup bailout

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Originally Posted by AK Gandy View Post
Nowhere in that article (or the additional links at the bottom) did I see the value of the tax breaks.

It says "Billions"............... but doesn't say if it might be $2B or $50B.

It does mention that they are exempt on $38B, so if we take a tax rate of 30% on that.........it comes out to a loss of $11.4Billion in taxes.

That would still be a break even, on saving what is a big cog in our financial system.

Which still sounds like a good deal to me.


.
And you don't think there were many more of these types of deals?

If it sounds to good to be true....it probably is

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post #5 of 32 (permalink) Old 12-07-2010, 05:00 PM
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Re: Taxpayers to make $12B on Citigroup bailout

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Good job George Bush.
Did that hurt? Break a finger typing that?

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post #6 of 32 (permalink) Old 12-07-2010, 05:30 PM Thread Starter
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Re: Taxpayers to make $12B on Citigroup bailout

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Did that hurt? Break a finger typing that?
I've consistently said, that I think TARP was one of the few things he got right.

.

Never have so many politicians, screwed so many Americans...just to make one black person lose his job.
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post #7 of 32 (permalink) Old 12-07-2010, 05:50 PM
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Re: Taxpayers to make $12B on Citigroup bailout

I thought Conservatives were for tax breaks for large companies? Now you guys are confusing me.

We KNOW Obama reduced the damage to the economy and saved many large companies.

He also tried to cut taxes for the middle class and small to medium business (both blocked by Republicans).

Turn off the Faux News man!

I'm officially...Stroke-less.
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post #8 of 32 (permalink) Old 12-07-2010, 07:31 PM
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Re: Taxpayers to make $12B on Citigroup bailout

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Originally Posted by Suns_PSD View Post
I thought Conservatives were for tax breaks for large companies? Now you guys are confusing me.

We KNOW Obama reduced the damage to the economy and saved many large companies.

He also tried to cut taxes for the middle class and small to medium business (both blocked by Republicans).

Turn off the Faux News man!
So you are saying Citigroup did NOT get a tax break to cover the cost of their repaying the TARP funds???

A tax break across the board is one thing but when guberment singles out a comany or companies (GM) to give a tax break in order to alleviate their debt to the American people is totally different.

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post #9 of 32 (permalink) Old 12-07-2010, 08:21 PM Thread Starter
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Re: Taxpayers to make $12B on Citigroup bailout

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Originally Posted by PsRumors View Post
So you are saying Citigroup did NOT get a tax break to cover the cost of their repaying the TARP funds???

A tax break across the board is one thing but when guberment singles out a comany or companies (GM) to give a tax break in order to alleviate their debt to the American people is totally different.
How much in taxes would Citigroup have paid.......if they had went belly up?

They simply got a tax break.

Not absolved of paying any taxes.


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post #10 of 32 (permalink) Old 12-07-2010, 08:31 PM
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Re: Taxpayers to make $12B on Citigroup bailout

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How much in taxes would Citigroup have paid.......if they had went belly up?

They simply got a tax break.

Not absolved of paying any taxes. :doh:


.
Who said anything about Citi not paying ANY tax?

They were given a one time tax break which covered their payments to pay off TARP.....how is that any different than GM's deal which you were against?

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