The hidden cost of government settlements - The Washington Post: When Bank of America agreed in December to pay $335 million to resolve federal charges that its mortgage-lending arm discriminated against black and Hispanic borrowers, government officials hailed it as the largest fair-lending settlement in history. But, in fact, the banking giant has the right to a massive discount on the payout. Thirty-five percent of the settlement is deductible. That means Bank of America could wind up saving $117 million on its tax bill.
Nice. We, the taxpayers, get to subsidize the settlements paid by banks for their bogus lending practices. Thanks to Mystery Reader for this engine-starter.