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.
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.
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you can access the webmail and identify your representative/senators with addresses and phone/fax numbers at
------ 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}
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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).