Saturday, October 04, 2008

After Change In Tax Law, Wells Fargo Swoops In

The Washington Post reports:
experts in tax law said the Wells Fargo deal actually was likely to be more expensive for the government. Losses on Wachovia's portfolio of bad loans would have been absorbed by the FDIC, which is funded by the banking industry. Under the tax law change, those losses instead will allow Wells Fargo to reduce its taxable income.