Banks got another $140B

[fabijo]

Paulson's $140B surprise
Danny Schechter: While world debated bailout, Treasury snuck bank merger tax break under congress' nose

While everyone was debating the wisdom of giving $700B over to the US Treasury to divide amongst failing banks in late September, the Treasury Department silently changed the tax code and in doing so opened up an opportunity for banks to save billions when acquiring other banks. The Associated Press reports that, in some cases, banks will actually make money in the act of buying up their competitors. They point to Wells Fargo's effort to acquire Wachovia, a deal that will cost roughly $15B but that, under the new tax code, will save Wells Fargo $20B. Free money!!

 

[wv-girl]

Paulson's $140B surprise
Danny Schechter: While world debated bailout, Treasury snuck bank merger tax break under congress' nose

That is why Paulson was squirming when he testified Wed. They were asking him about PNC buying National City -- National City not having the benefit of getting any of the Bailout money. He would not directly answer the question and skirted around it. He was afraid that he was caught. Pnc stands to make 5 Billion on the deal. And National City was not even in trouble financially. It was a hostile take-over. Crooks--all of them.