TARP’s “Godfather” Investment Should Give Rise To Deductible Interest

By:  Dustin Covello Earlier this year, my former colleague Jonathan Prokup and I published an article in the Journal of Taxation and Regulation of Financial Institutions.  In the article, we considered the federal tax consequences of Treasury’s capital purchase program – the centerpiece of TARP.  Under the program, Treasury invested several hundred billion dollars into … More TARP’s “Godfather” Investment Should Give Rise To Deductible Interest

Should Banks Be Entitled To Tax Deductions For “Dividends” On TARP Stock?

By Jonathan Prokup & Dustin Covello Four years have passed since Congress enacted the Troubled Assets Relief Program, better known as TARP.  After Treasury determined that frozen credit markets were threatening the U.S. financial industry and even the entire economy, it asked Congress to authorize the purchase of illiquid mortgages from banks.  Congress obliged, authorizing … More Should Banks Be Entitled To Tax Deductions For “Dividends” On TARP Stock?