We know that TARP, aka Bailout, funds helped PNC Bank acquire Cleveland’s National City Bank. Did you know that PNC will also get a tax break out of the deal?
Several months ago, it seems the Bush Administration created a tax break which allows the healthy banks that acquire troubled banks to write down healthy portions of the troubled banks assets when figuring their tax bills. It’s such a great deal that some banks are netting money – PNC is expected to net $5.1 billion more in tax breaks than it paid for PNC’s assets.
Let me see if I get this … A healthy bank gets free government money in the form of drastically reduced tax liability – even if it is healthy and doesn’t need it.