A tax decision that made it a better deal for Wells Fargo & Co. to purchase Wachovia Corp. would be eliminated by the economic stimulus bill being considered by Congress.
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Kathleen Reardon: Where's Ross Perot When You Need Him?
I'm ready for a little old fashioned Ross Perot specification of the expected outcomes of the stimulus package. This is what we call in education a "teachable moment."
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Geoffrey Dunn: Palin's Facebook Page: Opposes Obama's Stimulus Plan
We learn on Facebook that Palin has "serious concerns" with Obama's stimulus package. Say what?
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Jay Mandle: Our Twin Crises
That we are unable to manage a functioning economy or deal with climate change because rapacious Wall Street traders have disproportionate political clout is a measure of our political dysfunction.
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Ellis Weiner: Steele Crazy After All This Year
We are witnessing, not so much the collapse of the Republican Party, as its slide into insanity. What was the GOP's great accomplishment last week? A show of "unity" enough to block the first stimulus package.
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Robert Kuttner: Stimulus, Yes; Bank Bailout II, No
If Obama does his job he will mobilize public opinion and isolate Republicans who would rather sink the economy than give a Democratic president legislative success.
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MJ Rosenberg: Obama: Use This And the Jobs Bill Will Pass With a 100 Vote Margin
Our best salesman is Obama. There is no house or senate member who this president cannot roll over.
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Drew Westen: Change vs. Bipartisanship: What Happens When You Throw a Bipartisan Party and Half the Guest List Stays Home?
The problem with a message of bipartisanship is that it makes it very difficult to tell the story of why things are so bad that we need dramatic change.
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I want nothing more than to see Wells Fargo go belly up. That bank has no compassion for poor people. None.
Citibank and their overseas call center personnel are the same. They care about nothing or nobody even when they caused the problem.
Fed up? Had enough? Feel like the government is doing nothing but continuing to pander to the elite bankers and continuing to enrich them with your money, your kid's money, your grandkid's money, and your great-grandkid's money? While doing nothing, or next to nothing to help the 300 Million of us who will have to pay this debt back? Feel a sense of outrage at how these elite bankers assume it is their money, and not ours, and that they have every right to it, with no responsibilities, or accountability? Outraged by how they spend it, bonus it, hoard it, and don't lend it (unless its "lent" on credit cards at 32.24%)?
Then, vote with your feet . Perform your own individual protest and revolution. Refuse to do business with any of the banks and financial institutions that have acted in ways that are contra to your values. And, let them know about it.
I have personally closed all accounts, and have stopped doing business with the following institutions: Wells Fargo, B of A, Citi, Merrill. And, I have voiced my reasons to them. I will never patronize any of these institutions for the rest of my life, under any circumstances. Their posture and behavior is abhorent to me. And, I have chosen to do something about it, notwithstanding the pain in the ass.
Do something about it. Or, quit complaining as you continue to be part of the problem...........
My wife just asked -with all this theft over the last 30; why has there not been a revolution?
I don't know.
We have been lulled into complacency, and don't have the awareness and knowledge-until after the fact-of what is going on, nor do we have the stomach or stamina to embark on true revolution. Nor, do we have the experience. We typically look with disdain at revolutions and protests "over there" and in some respects, are too well mannered to engage in our own. Sort of like well mannered cows, pigs, and chickens which are all well mannered as they are transported, coralled, and walked down the chute to the slaughter. Pictures of bliss, and complacent ignorance. And, blind trust.
Unfortunately, I'd be willing to bet that there will be protests at best, and probably much worse before this ends.
This is an absolute outrage.
Here's the low down folks:
10/02/08 IRS/Paulson changes rule. Wells Fargo would be able to use $74 billion in losses that came with Wachovia to shelter its profits. Without the IRS rule, it only would have been able to take $1 billion a year in losses over 20 years.
10/04/08 Wells fargo agrees to purchase Wachovia for $15 Billion.
To date: Wells Fargo has received $25 Billion in TARP funds.
So, we gave WF $25 Billion, or $10 Billion more than they needed to purchase Wachovia. And, we gave them a $74 Billion tax benefit (less $15 Billion purchase amount) = $59 Billion.
Thus, this has cost us $84 Billion thus far ($25 B + $59 B).
And they WONDER why populist rage is bioling out here in the population. I have cancelled all Wells Fargo accounts, and they will stay cancelled fro life. Same for Citi, B of A, Merrill.
Awesome. Thanks for the math on the cost of this tax break.
How DARE Paulson changed the rule -- that's Congress's job!
Note further that, as I recall, this break was first put in during the Clinton presidency, by Phil Gramm, McCain's financial guru.
Then again, we're all just whiners. Even Gramm's Wall Street buds.
Glass Steagall was revoked during Clinton. The tax break survived and stood as it had for over 20 years until 10/02/08. Wells Fargo agreed to acquire Wachovia 10/04/08............
How much did THAT cost us?
You couldn't make this stuff up.
McClatchy rocks.
About time this tax break got eliminated.
More money wasted on publishing Ad...
This is another example of the super rich being coddled by the government. Whomever did this at the IRS should be OUT of a job, and IN jail.
When Teddy Roosevelt was breaking up the monopolies, one Supreme Court ruling said that a country can have the overwhelming majority of its' wealth controlled by only a few or one can have a democracy, but one cannot have both at the same time. I agree with that. Time to break up these huge financial monopolies, most of which were gained through shafting the working class.
This is just another example, in a long, long list of examples, of the ultra wealthy stealing from the rest of America. It must stop. I say pay it all back. Every last red cent with 10% interest.
10% interest? How about 26% interest? The banks should be charged the same loan shark interested rates they charge the general public.
With all these changes I'm still wondering if Wells Fargo is still the bank of choice among Mormons?
Just wondering.
I hope this provision stays in the bill.
I'm against the whole Hoover Bank Bailout,
But,
Why should their be a cap on acquired losses?
Actually, we need to set limits on the size of corporations. We have too too many huge conglomerates, especially in Media where the MSM is controlled by rich elite with their own hidden agenda...news be damned...all propaganda all the time.
If there are corporations that are too big to fail, we need to facilitate their break-up...just like in the old days with Standard Oil. AIG had $62 Trillion on its books...and we can't throw enough money at it.
Get some REGULATION going, some oversight, some strict laws...this ponzi scheme is going to doom us all.
Reinstate Glass-Stegal(sp?)
Yes .. yes .. YES!!
Is this article referring to the change in section 382 of the tax code?
http://www.washingtonpost.com/wp-dyn/content/article/2008/11/09/AR2008110902155.html
If so, GOOD! It's about time!
From the article:
"Some congressional staff members have privately concluded that the notice was illegal. But they have worried that saying so publicly could unravel several recent bank mergers made possible by the change and send the economy into an even deeper tailspin."
I really get tired of selective justice or too big to fail or prosecute calculations. Hypocrisy is running rampant throughout the democracy. Free market is the mantra, the market can withstand anything, including scandal. Let the good times roll!
... which proves you can find justification for anything if you look hard enough.
Gee... Grandfather should apply as being fair is fair.
I do not work for Wells, but... they rescued Wachovia and its clients...
Do not discourage companies trying to help other companies (of course, no companies will buy without benefits either...)...
C'mon... do not set precedent... this may soon be set to taxpayers...
Sorry... no grandfather rule applies...
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McClatchy | Lisa Zagaroli | February 8, 2009 08:36 AM