Corruption Update: Another Bailout for Bob Rubin's Old Firm

Seriously. The fact that the IRS, or let's be clear about, Timothy Geithner's Department of the Treasury is allowing Citi to get an additional $32 billion in tax breaks so that it can repay the TARP more quickly:

The Internal Revenue Service on Friday issued an exception to long-standing tax rules for the benefit of Citigroup and a few other companies partially owned by the government. As a result, Citigroup will be allowed to retain billions of dollars worth of tax breaks that otherwise would decline in value when the government sells its stake to private investors.

By way of comparison, the government invested $45 billion in Citi, which has, through various means, converted into common stock at above market valuations.

So, it now appears that we are paying Citi to pay us back the TARP money, $32 billion in tax deductions, so that they can pay back the $20 billion that is still owed as debt, overpay their next CEO.

With the top corporate tax rate at 35%, this translates to about us paying them $11.2 billion to get back our $20 billion, which was earning us 8%, or $1.6 billion a year......Lovely deal, huh?

I'm calling corruption on this.

I'm not sure if anyone in the White House is personally getting rich on this, but, much like the recently deceased Yegor Gaidar in Russia, they are creating and maintaining a corrupt system.

I'm sure, like Gaidar, they see themselves as heroic, but they are looting the United States.