The day after Citigroup made its bid, the Treasury changed a tax rule that lets banks accelerate the losses and writedowns on banks they acquire against their own net income, offsetting the charges as tax write-offs.Not enough bullets.
Wells plans on writing off some $74 billion of Wachovia's $498 billion loan portfolio -- an insanely large amount that reflects just how poisoned Wachovia's books really were. With the new tax rules, it gets to use all of that $74 billion as a charge against its own net income, which means one thing: Wells Fargo's going to be a tax-write-off machine for years to come.
24 October 2008
Not Enough Bullets: Tax Loophole Edition
Well, now we know why Wells Fargo wanted wanted to buy Wachovia, a tax loophole
Labels:
Corruption
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Finance
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regulation
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Taxes
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