Don’t believe me. Believe the headlines…
Wells Fargo Advances on Record Profit, Cost-Cutting Plans
By Dakin Campbell -Jul 19, 2011 3:40 PM CT
Wells Fargo Profit Jumps, but Revenue Falls Slightly
April 20, 2011, 8:58 am Investment Banking
By ERIC DASH
Wells Fargo Profits Hit Record, But Revenue Decline Sends Stock Down 8.4%
Wells Fargo Debit Fee Questioned As Bank Records Record Profit
Wells Fargo, PNC Hardly Pay Taxes
By Willy Staley Fri Nov 4, 2011
A new report on corporate tax rates shows that the financial services industry pays way less than its fair share.
Leading the pack is Wells Fargo, which paid an average federal income tax of negative 1.4% over the last few years. On $49.4 billion in profits over the last few years, Wells Fargo has paid negative $680 million dollars — taking more subsidies and tax breaks than they pay!
Indeed, Wells Fargo topped the list of all corporations by dollar amount in tax subsidies. Between 2008 and 2010, Wells Fargo received nearly $18 billion in tax subsidies!
Other Banks Benefitted Too
Close behind Wells Fargo was PNC Financial, which paid an effective rate of 1.4% over the last three years. On nearly $10 billion in profits, the bank paid only $144 million in taxes.
Other retail banks that proved successful at dodging Uncle Sam were BB&T (20.4%), Capital One (24.1%), US Bancorp (27.6%). JP Morgan Chase, by paying 30.1% looks like an upstanding corporate citizen.
The Subsidy That Won’t Die
Jan 12, 2010 7:00 PM EST
The big banks claim the government isn’t helping them anymore. Not exactly. Check out this little-known subsidy.
But the big American banks aren’t nearly so independent as they would have us believe. JPMorgan Chase, Goldman Sachs, and their peers are still benefitting hugely from significant post-crisis subsidy programs that boost their profits. I’m talking mostly about the Temporary Liquidity Guarantee Program (TLGP). This was a program started in the wake of the Lehman Bros. collapse to deal with the fact that banks were having a tough time raising short-term capital on decent terms. Under the TLGP, the Federal Deposit Insurance Corp., which is ultimately backed by the taxpayers, would guarantee debt in exchange for fees paid by the banks issuing debt.
The TGLP was ended to new entrants in June 2009 and thus far has gone without a loss. But the fact remains: Private companies were allowed to borrow massive amounts of money—$345 billion at the peak in May 2009—on the public’s credit. At the end of the third quarter, there was still $313 billion outstanding.
the TLGP borrowings of individual institutions as of Nov. 30 and the interest rates they’re paying. General Electric was the largest user, with nearly $88 billion. (Its GE Capital unit has prodigious borrowing needs.) But GE was followed by the big bailed-out banks: Citigroup ($64.6 billion), Bank of America ($44.5 billion), JPMorgan ($39.7 billion), Morgan Stanley ($25 billion), Goldman Sachs ($21.26 billion), and Wells Fargo ($9.5 billion).
…If it doesn’t make you mad, you’re one of the 1% or completely clueless.