#OT# Prying the books open
- From: F. George McDuffee <gmcduffee@xxxxxxxxxxxxxxxxxxxxxx>
- Date: Tue, 24 Feb 2009 14:37:31 -0600
Some people have contacted me off list to express doubt about the
extent to which the books of the US corporations including the
banks that are receiving huge taxpayer "bailouts" remain closed.
====== One article of many =========
Bailed-Out Firms Use Offshore Tax Havens
KEN THOMAS | January 16, 2009 09:34 PM EST | AP
WASHINGTON ? Eighty-three of the nation's 100 largest
corporations, including Citigroup, Bank of America and News
Corp., had subsidiaries in offshore tax havens in 2007, and some
of the companies received federal bailout funding, a government
watchdog said Friday.
The Government Accountability Office released a report that said
Bank of America Inc., Citigroup Inc. and Morgan Stanley all had
more than 100 units in countries that maintain low or no taxes.
The three financial institutions were included in the $700
billion financial bailout approved by Congress.
Insurance giant American International Group Inc., which has
received about $150 billion in bailout money, had 18
subsidiaries. JPMorgan Chase & Co. had 50 units and Wells Fargo &
Co. had 18; both financial institutions received government
bailout money.
<snip>
General Motors Corp., which received $13.4 billion from the
federal rescue package, had 11 offshore subsidiaries while GM's
financing arm, GMAC LLC, had two offshore units. GMAC, whose
majority owner is private equity firm Cerberus Capital Management
LP, received $5 billion from the Treasury Department in late
December.
<snip>
----------------------
http://www.huffingtonpost.com/2009/01/16/over-8-in-10-corporations_n_158693.html
While this is an outrage, rather than simply venting on this NG,
I sent the following email to my representatives in Congress and
the president. If you agree, feel free to use any or all of it.
you can access the webmail and identify your
representative/senators with addresses and phone/fax numbers at
http://www.house.gov/
http://www.senate.gov/
http://www.whitehouse.gov/contact/
------ email follows -------
As you are no doubt aware, the current situation of many national
corporations including financial giants such as Citigroup, Bank
of America, and Chase, as well as AIG, continue to rapidly
deteriorate.
This is very unfortunate as it is apparent that large amounts of
capital are going to be required to either rescue or liquidate
significant parts of the American economy including General
Motors Corporation and its subsidiaries including Delphi and GMAC
as well as Chrysler.
In large part, it appears that much of the Federal [taxpayer]
"rescue" funds are being wasted, because these are not targeted,
and these are not targeted because of a lack of critical
information/knowledge about the actual financial conditions of
the companies involved, including the real value of assets and
the existence/amount of liabilities, including those that result
from any "gentlemens' agreements."
Reports in the news media [see reference below] that all of the
major recipients of taxpayer rescue funds are maintaining large
numbers of foreign bank accounts in tax havens such as the Cayman
Islands, Aruba, and Liechtenstein, greatly amplify the impression
that these corporations are hiding information [and money].
The current situation is far too critical to attempt to correct
with partial information, and an increasing public perception of
massive fraud.
In order to eliminate this problem, it is suggested that a
provision be included in all future governmental bailouts,
including FRB actions, beyond normal discount operations, that
representatives and agents of the Federal government will have
complete access to all financial records and data of any
corporation receiving Federal [taxpayer] assistance funds,
specifically including those held in any foreign jurisdiction.
If the foreign governments object to such release to governmental
agents, the governmental representative can be "hired" as a
temporary employee of the company with rights of full access to
all company financial records.
This is of particular concern in light of the imminent
"investment" of additional massive sums in the largest national
banks, and the likely "rescue" of GM/Chrysler.
------ AP Article follows -------
{above AP article inserted here}
------ end email -----------
Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).
.
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