Phil Gramms UBS bank exploits causes law changes

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Truthmatters
http://www.bloomberg.com/apps/news?pid=20601109&sid=afaIyKMEym.g&refer=exclusive




IRS Set to Close Tax Loopholes for Non-U.S. Banks (Update1)

By Ryan J. Donmoyer

July 16 (Bloomberg) -- The Internal Revenue Service will close loopholes in its agreements with foreign banks that Swiss lender UBS AG and its clients allegedly exploited to shield $20 billion in assets from U.S. taxes, an agency official said.

Barry Shott, the IRS's deputy commissioner of international affairs, said in an interview the crackdown will make it harder for Americans to conceal assets in offshore shell companies. The agency for the first time will require accounting firms to report any activity that may constitute fraud as defined by the U.S., he said.

``We're trying to pierce the veil,'' Shott said. ``It's going to happen in the near future. This is not a long-term project.''

The IRS is putting the finishing touches on the new rules one day before the Senate Permanent Subcommittee on Investigations releases a report on secret accounts at Zurich- based UBS and Liechtenstein's LGT Group.

The new rules, at least two years in the making, are aimed at tightening enforcement of so-called Qualified Intermediary contracts. The QI program was adopted in 2000 to help the IRS keep track of U.S. customers' money in foreign banks.

Under the program, foreign banks agree to confirm U.S. depositors' identities and notify the IRS of income earned in the accounts. In exchange, the banks can eliminate withholding taxes or withhold taxes at favorable rates. Without the agreement, they would be required to withhold 30 percent.

External Audits

Banks participating in the program also must agree to be examined by external auditors approved by the IRS. Foreign banks generally agree to take part in order to maintain access to U.S. markets.

The new rules would require banks to identify the actual owner of an account's assets and the recipient of any interest payments. If the individual is an American, the bank must file a 1099 tax form with the IRS and withhold taxes at a 28 percent rate or face possible criminal charges, Shott said.

Shott said the IRS is still in discussions with the Treasury Department over whether to make the rules retroactive.

In court papers filed last month, the IRS quoted former UBS official Bradley Birkenfeld as saying the bank separated clients into those willing to comply with disclosure rules and those who wanted to remain hidden. Many of the clandestine depositors hid assets by using layers of shell companies.
 
http://www.nationalmortgagenews.com/premium/archive/?ts=1034092803



October 8, 2002

Gramm Joining UBS; LaFalce to SEC Panel?
Sen. Phil Gramm, R-Texas, a one-time chairman of the Senate Banking Committee, is joining UBS Warburg as its vice chairman. Sen. Gramm, who will retire early next year, co-authored the Gramm-Leach-Bliley Act, which eliminated legal barriers that separated banks from securities firms. A frequent critic of Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System, Sen. Gramm will be joining a firm that has made quite a bit of money the past two years off the mortgage market, especially in regard to subprime lending/securitization. Meanwhile, the ranking Democrat on the House Financial Services Committee, Rep. John LaFalce, D-N.Y., is being considered for a seat on a newly created federal board to oversee the accounting industry. Rep. LaFalce, who is retiring, was contacted by the Securities and Exchange Commission, which is putting the panel together.
 
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McCain had to let go another campaign member just yesterday for shady business dealings.

He seems to surround himself with people who stretch and bend the laws for personal profit.
 
http://www.vanityfair.com/online/politics/2008/07/another-mccain-cochair-bites-the-dust.html


Another McCain Co-Chair Bites the Dust
by Christopher BatemanJuly 14, 2008, 5:22 PM
Yet another member of John McCain’s presidential campaign is stepping down after coming under scrutiny for shady business dealings. McCain finance co-chair and former New Jersey congressman Jim Courter, chief executive of telecom corporation IDT, is resigning from the campaign after the FCC slapped IDT with a $1.3 million fine last week for failing to disclose information about its contracts in Haiti. IDT is being investigated by several federal agencies after a former employee filed a lawsuit alleging that the company engaged in corrupt practices in order to obtain favorable contracts in the country.

Courter has been the chief executive of IDT since 2001. His resignation follows that of McCain finance co-chair Tom Loeffler in May over lobbying ties, and that of Rick Renzi, another McCain finance co-chair, who was indicted in February for money laundering and other charges.

A McCain spokesman seemed caught off guard by the news of IDT’s troubles when VF Daily called for comment this morning. The spokesman called back a few hours later to inform us that Courter was “withdrawing his involvement in our fundraising efforts as a result of the growing interest in his business ties.” He added that the campaign was made aware of Courter’s decision today.
 
Grahm just claimed to stop lobbying for UBS after it was clear McCain had the nomination. About April I think. I say claimed, becuase I don't believe anything he says.
 
He keeps hiring people who have screwed the American people with thier business dealings.

I just dont understand why anyone would ever vote for the guy who hires these pain merchants?
 
He keeps hiring people who have screwed the American people with thier business dealings.

I just dont understand why anyone would ever vote for the guy who hires these pain merchants?

People that care more about profit than their country. and somehow think they can get in on the action.
Many are rich wannabes.
 
I wish we had a media that actually reported this stuff for all to hear.

You have to dig it out of the bullshit like "oh my god Jesse said both n words", "the surge is a sucess because Bush did a study" and "Bradjolina had twins".
 
I wish we had a media that actually reported this stuff for all to hear.

You have to dig it out of the bullshit like "oh my god Jesse said both n words", "the surge is a sucess because Bush did a study" and "Bradjolina had twins".
Watch the jibjab clip on "What We Call The News".
 
Remember this thread.

How I wish that site still allowed you to look at UBS,s welcome to Phil Gramm and their dreamy eyed thanks for the sub prime profits.
 
I just got banned for posting this information on a chat site.

How I wish the right was a tiny bit honest
 
Wow... You always got a home here, Desh. Even if some other site would ban you for that.
I thought the only idiots that banned people for their views was the "democratic underground".......those bastards will ban anyone that doesn't toe the liberal line....


I think she flunked their IQ test......under 50, you're gone.....
 

If one takes the time to listen closely he said housing will not experience the kind of bubble that "dot.coms" experienced and he was correct. Many people who invested in "dot.coms" saw their entire investment wiped out. Company stock would drop 80% or, in some cases, the company simply folded. How many houses have lost 80% of their value? Or even 50%? (Just to be clear I'm talking about the new homes that were built, not 50-year old homes in cities where manufacturing jobs disappeared.)

Regarding his comments on home ownership and increasing rental units the quickest way to increase rental vacancies is to build additional homes. People buy homes and free up apartments. Sort of two birds with one stone. The goal being to provide shelter.

Also, he made it clear home ownership was not for everyone.

A large portion of the problem would have been avoided if low mortgages were limited to first time buyers and that's really what the "program" was intended to do; enable and encourage first time buyers. Other countries have such programs and they work very well.

Did I put a nice spin on that, Bravo? :D
 
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