Bailout Bailed Out

Obama Admin Grants Mega Tax Break To Citi In Bailout Deal

Justin Elliott | December 16, 2009, 2:35PM

Citigroup CEO Vikram Pandit and Barack Obama

Did the Obama Administration just deliver a $38 billion stealth bailout to Citigroup?

According to several outside experts the answer is yes, but the Treasury is maintaining an IRS ruling that granted Citi a $38 billion tax break was routine and proper. The Washington Post first reported the news of the IRS ruling in a front-page story today.

The IRS decision came as part of a deal for Citi to pay back $20 billion, which was announced earlier this week amid mutual back-patting. One benefit for Citi is being freed from salary restrictions.

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