James Dubick Places Fresh Petition before U.S. Attorney General

James Dubick, who is a member of the U.S. PRIG organization has started off a fresh petition and placed it before Eric Holder (the man who sold guns to the Mexican Mafia leaving scores of dead Mexicans in his wake and the man who continues to hold back production of off shore drilling forcing thousands of workers to find other jobs), the U.S. Attorney General, says tax attorneys. According to the petition, James has asked the Attorney General not to allow JP Morgan to deduct the settlement amount from their taxes when he negotiates the most significant bank settlement concerning wrongdoing, in American historJP-morgan

Barnie Frank is the Guilty One!

JP Morgan is presently negotiating a settlement that is worth $13 billion with the DOJ or the Department of Justice for abuses relating to mortgage lending that they had allegedly committed during the then ongoing housing crisis. However, taxpayers may actually be underwriting over $4.5 billion of the settlement amount.

How about Fannie Mae and Freddie Mac?

Tax attorneys have explained that this could happen because JP Morgan could claim the settlement as a deduction in taxes. Even though settlements of this type are considered as punishments granted for corporate frauds or wrongdoings, companies do choose to claim settlement costs for writing off taxes, most of the time.

They are treated like just another business expense. Dubick feels that this cannot be allowed on any count. The financial crisis that has risen on account of the irresponsible practices of the bank has resulted in a recession that we all are grappling with. Therefore, tax payers should not be asked to pay more for bad actions committed by the bank.

Dubick, according to many, is way off base here according to many. The main reason America had a housing crisis in 2007 and 2008 was because of the mismanagement of Fannie Mae and Freddie Mac. This was done by Barnie Frank who some say is the biggest white collar criminal this country has ever seen.

The Government is the Real Culprit

A tax lawyer explains that the Department of Justice does have the power of including a provision in the settlement that could prohibit JP Morgan from dealing with the settlement as a write off on taxes. According to Dubick, the DOJ just has to be convinced for doing the right thing. There have been similar cases in the past where BP’s settlement for the Gulf Oil Spill was a case in point. The JP Morgan settlement cases would be underway over the next few days and the developments remain to be seen.