13 TARP recipients owe $220M-plus in back taxes

Thirteen recipients of bailout funds from the Troubled Asset Relief Program owe more than $220 million in unpaid federal taxes.
MAR 19, 2009
By  Bloomberg
Thirteen recipients of bailout funds from the Troubled Asset Relief Program owe more than $220 million in unpaid federal taxes, Rep. John Lewis, D-Ga., said today at a hearing held by the House Ways and Means Committee Subcommittee on Oversight. More than $300 billion has been given to companies under TARP, the 2008 program set up to buy troubled assets and equity in financial institutions damaged by the subprime mortgage crisis, said Mr. Lewis, who chairs the committee. There are plans to provide billions of dollars more to shore up ailing institutions. Banks and other institutions were required to sign a contract stating they had no unpaid federal taxes, Mr. Lewis said. The Treasury Department relied on the statements, he said, when they invested the money in the institutions. “Taxpayers have no sense that there is any control over this money,” Mr. Lewis said in a statement. “They have no idea what, if anything, they will get in return. This entire program is based on trust — trust in the givers and trust in the takers. At this point there is no trust.” The subcommittee investigated 23 TARP recipients and found that 13 of them owed more than $220 million in federal taxes, Mr. Lewis said, adding that two companies owe more than $100 million each. “How can this be?” Mr. Lewis said. “If we looked at all 470 recipients, how much would they owe? Are they signing contracts knowing that they owe taxes, but thinking they will not get caught?” He suggested Bush administration Treasury Secretary Henry Paulson may have turned a “blind eye” to what was going on. “This is shameful,” Mr. Lewis said. “It is a disgrace. The American people are fed up, they are fired up, and they’re not going to take it anymore. As members of Congress, we shouldn’t take it anymore either.” Mr. Lewis did not reveal the names of the companies owing back taxes. “We can’t reveal those names,” said Brenda Jones, Mr. Lewis’ spokeswoman. “There are some limitations about what we can reveal.”

Latest News

Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says
Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says

A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.

SEC bars New Jersey advisor after $9.9M fraud against Gold Star families
SEC bars New Jersey advisor after $9.9M fraud against Gold Star families

Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.

Navigating the great wealth transfer: Are advisors ready for both waves?
Navigating the great wealth transfer: Are advisors ready for both waves?

After years or decades spent building deep relationships with clients, experienced advisors' attention and intention must turn toward their spouses, children, and future generations.

UBS Financial loses another investor lawsuit involving Tesla stock
UBS Financial loses another investor lawsuit involving Tesla stock

The customer’s UBS financial advisor allegedly mishandled an options strategy called a collar, according to the client’s attorney.

Trump's one big beautiful bill reshapes charitable giving for donors and advisors
Trump's one big beautiful bill reshapes charitable giving for donors and advisors

An expansion to a 2017 TCJA provision, a permanent increase to the standard deduction, and additional incentives for non-itemizers add new twists to the donate-or-wait decision.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.