Tax breaks for firms taking over banks

AP
Published: November 11, 2008

A new tax policy from the Treasury Department will let companies that take over banks hit by the mortgage crisis to write off more of the losses.
   
One estimate says it could save those firms up to $140 billion dollars in taxes. Private tax experts say in some cases, the tax breaks could exceed the cost of acquiring the banks. And they would
come on top of the $700 billion government bailout.
   
Some members of Congress are upset that such a sweeping tax change was issued with no public hearings or congressional input. But the Treasury Department says it’s just trying to give guidance to firms involved in bank takeovers at a time when numerous financial institutions are struggling, and their value can be difficult to determine.