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NEW YORK (
Bank of America(BAC - Get Report) will pay no Federal taxes for 2010, instead receiving a refund of $1 billion, the
Charlotte Observer pointed out in an
article published Friday.
The bank told the newspaper the reason is that the bank lost $5.4 billion before taxes in 2010.
Nonetheless, a group called U.S. Uncut has been protesting at Bank of America branches around the U.S. and also at Bank of America's investor conference earlier this month.
pointed out in a
series of articles, many banks and financial companies, as well as others that racked up big losses during the crisis will not be paying taxes for several years, even after they become profitable.
TheStreet and prominent
hedge fund investor Bill Ackman have highlighted
Citigroup(C - Get Report) as one prominent example of a company that will pay no taxes for years to come. Others include
Regions Financial(RF - Get Report)Synovus(SNV - Get Report),
CIT Group(CIT - Get Report),
AIG(AIG - Get Report) and
General Motors(GM - Get Report).
Indeed, one of the big advantages of GM's acquisition of AmeriCredit is that the car company will be able to "carry forward" its losses to shelter the profits of AmeriCredit,
creating an estimated $3-5 billion windfall.
Written by Dan Freed in New York.