Citigroup
IRS Exempts Citigroup from Tax on Repurchase of TARP Assets
Date:
December 11, 2009
Who:
IRS
Who:
Treasury
Policy Area:
Financial Sector Policy
Economic Target:
Citigroup
Action Type:
Tax Break
Maximum Amount:
$38.00 billion The IRS agreed to give up billions in tax money in exchange for Citigroup’s repurchase of $20 billion of its assets held by TARP.
Notes:
According to a Washington Post article, the exact value of the IRS ruling will depend on Citi’s future profits and other factors. But accounting experts estimated that Citi will save at least several billion dollars. Some experts have also said that the lost tax revenue could easily outweigh the profits the Treasury will likely make in selling its ownership stake in Citi.
Citigroup Inc.
Date:
October 28, 2008
Economic Target:
Citigroup
Maximum Amount:
$25.00 billion
Deficit Impact:
-$6.85 billion This institution received funds from the Treasury Department under the Capital Purchase Program in order to promote lending and market liquidity. The institution gives the Treasury Department warrants and dividend payments, while the Treasury buys preferred stock shares from the bank.
Source:
Notes:
Maximum amount based on official Treasury statements. Amount spent indicates loans and purchases minus loan repayments (but not dividends), as of 12/8/2010 (http://www.financialstability.gov/latest/index.html). Deficit impact is net proceeds (excluding dividends) from Citigroup.
