Footnote Could Cost Taxpayers Billions

Publication: Detroit Free Press

Author: Brian Dickerson


04/02/2009 - Read any good footnotes lately?

Kevin Webb has.

Webb, 29, is an analyst for the SubsidyScope project, a nest of nonpartisan policy wonks who sniff out all the sneaky ways the U.S. government is funneling your tax dollars to private industry.

Webb was perusing a batch of contracts in which the Treasury Department agreed last October to hand the nation's largest banks some $250 billion when he came across a provision that entitles the government to buy shares of the banks' common stock at a predetermined price any time in the next 10 years.

Nothing sneaky about that. In theory, these stock warrants make the bailout deals more attractive to both taxpayers and the banks' current shareholders.

Read the full article Footnote Could Cost Taxpayers Billions on the Detroit Free Press' Web site.

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