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The New Tax Man: Big Banks and Hedge Funds

Posted By admin On October 19, 2010 @ 3:40 am In Money Watch | Comments Disabled

Fred Schulte and Ben Protess
Huffington Post
Oct 19, 2010

Nearly a dozen major banks and hedge funds, anticipating quick profits from homeowners who fall behind on property taxes, are quietly plowing hundreds of millions of dollars into businesses that collect the debts, tack on escalating fees and threaten to foreclose on the homes of those who fail to pay.

The Wall Street investors, which include Bank of America and JPMorgan Chase & Co., have purchased from local governments the right to collect delinquent taxes on several hundred thousand properties, many in distressed housing markets, the Huffington Post Investigative Fund has found.

In many cases, the banks and hedge funds created new companies to do their bidding. They gave the companies obscure, even whimsical names and used post office boxes as their addresses, masking Wall Street’s dominant new role as a surrogate tax collector.

In exchange for paying overdue real estate taxes, the investors gain legal powers from local governments to collect the debt and levy fees. At first, property owners may owe little more than a few hundred dollars, only to find their bills soaring into the thousands. In some jurisdictions, the new Wall Street tax collectors also chase debtors over other small bills, such as for water, sewer and sidewalk repair.

Full article here [1]

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The New Tax Man: Big Banks and Hedge Funds 140910banner5 [3]

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URLs in this post:

[1] Full article here: http://huffpostfund.org/stories/2010/10/new-tax-man-big-banks-and-hedge-funds

[2] Having A Supply Of Healthy Foods That Last Just Makes Sense (AD): http://www.efoodsdirect.com//index.html?aid=14&adid=43

[3] Image: http://www.homegain.com/homevalues

[4] Fed Data Shows Foreign Banks Huge Beneficiaries of Emergency Lending Programs, Hedge Funds, McDonald’s, Harley-Davidson and Others Also Bailed Out: http://www.prisonplanet.com/fed-data-shows-foreign-banks-huge-beneficiaries-of-emergency-lending-programs-hedge-funds-mcdonald%e2%80%99s-harley-davidson-and-others-also-bailed-out.html

[5] The Meltdown Of The Hedge Funds – And Its Effect On The Market – Was Foreseeable: http://www.prisonplanet.com/the-meltdown-of-the-hedge-funds-and-its-effect-on-the-market-%e2%80%93-was-foreseeable.html

[6] Hedge funds bet big on the falling euro: http://www.prisonplanet.com/hedge-funds-bet-big-on-the-falling-euro.html

[7] The Big Wall Street Banks Have Found A New Way To Strangle The American People: Predatory Property Tax Collection: http://www.prisonplanet.com/the-big-wall-street-banks-have-found-a-new-way-to-strangle-the-american-people-predatory-property-tax-collection.html

[8] Goldman Sachs And The Big Hedge Funds Are Pushing Leverage To Ridiculous Extremes: http://www.prisonplanet.com/goldman-sachs-and-the-big-hedge-funds-are-pushing-leverage-to-ridiculous-extremes.html

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