The tough talk on Sunday to the banks was just that talk

[AllentownJake]

Citigroup Gets Huge New $38 Billion Bailout, Wiping Out All Of The Taxpayer's "Profits"

http://www.businessinsider.com/citigroup-gets-huge-new-38-billion-bailout-wiping-out-all-of-the-taxpayers-profits-2009-12

I just want to make sure I get this straight, the President is angry, damn angry at the banks and at the same time his Treasury department is providing tax relief to the bankers. So they repay their TARP with the savings in their corporate taxes.

Let me just repeat this in clear and simple language. Banks are getting a Tax Break from the Obama Administration through rule interpretations on the profits they earned this year, and are using that tax break to pay TARP early. Just in time for Christmas bonuses.

So any of that idea that the government is breaking even, thrown out the window. I wish I could say I was surprised, I'm not.

Watch what Obama does, not what he says.

[Ken Burch]

1. NATIONALIZE THE FUCKERS NOW!

It's OUR money! WE should be deciding what the banks do with it if we're giving it to them!

[Nite Owl]

2. But, but the deficit

not one more penny added to the deficit. Oh, that was for the people. Sorry, I forgot the corporations are 'special'. We can die and go bankrupt but they are too big to fail.

[pissedoff01]

3. 'Watch what Obama does, not what he says'

No truer words

[asdjrocky]

4. 'Course it was Jake.

I've seen professional wrestling with more believable plots.

[Lilith Velkor]

7. 'Forget it, Jake, it's Chinatown.'

[uponit7771]

5. WHAT THE F*** does this have to do with Obama!?!? The IRS put this deal in play!!!! More Obama hate

[Zynx]

6. Specifically what they are doing is that they are allowing losses to be carried forward

at full value for as long as Citi wants.

"At the end of the third quarter, Citigroup said that the value of its past losses was about $38 billion, allowing it to avoid taxes on its next $38 billion in profits. Under normal IRS rules, a change in control would sharply reduce the amount of profits that Citigroup could shelter from taxes in any given year, making it much more difficult for Citigroup to realize the entire benefit before the tax breaks expired."

It's not quite the same as them arbitrarily saying that you guys don't have to pay taxes on your profits, though mechanically it works the same. It still stinks.