Tag Archives: Morgan Stanley

Jet-setting to Vacation Homes on Federal Money

Bailed-out banks’ CEOs used company jets for personal use

Chief executives of some banks that received federal money, including Bank of America Corp, Morgan Stanley and Regions Financial Corp, used company jets for their personal use, the Wall Street Journal reported on its website.

Flight records showed many occasions when banks receiving federal money flew their planes to destinations near resorts or executives’ vacation homes in Europe, Mexico, the Caribbean, south Florida and Aspen, according to the paper.

“We are implementing a new policy in 2009, under which personal use of aircraft will not be permitted,” a Bank of America spokesman told the paper, but declined to comment on specific trips.

In some cases, it was clear that bank executives were traveling for personal reasons; for other flights, many of which were over weekends or holidays, the passengers and purpose couldn’t be established, the paper added.

A spokesman for Morgan Stanley declined to comment to the paper on individual flights, but said its policy was to allow CEO John Mack personal use of corporate jets, with the cost “fully disclosed” in annual proxy filings.

A Regions spokesman also declined to comment to the paper on the trip or the cost estimate, but said all travel on company jets “either for personal or business was within our policy.”

The banks could not be immediately reached for comment by Reuters.

Bailing out Companies with Offshore Tax Havens

Report Finds Major U.S. Companies Have Offshore Tax Havens

A majority of America’s largest publicly traded companies and the U.S. government’s largest federal contractors — including some receiving millions in federal bailout money — use multiple subsidiaries in offshore tax havens to conduct business and avoid paying U.S. taxes, a new report finds.

The new Government Accountability Office (GAO) report, released today by Sens. Byron L. Dorgan (D-N.D.) and Carl M. Levin (D-Mich.), lists Citigroup and Morgan Stanley as having set up hundreds of tax haven subsidiaries, along with American International Group and Bank of America. Also in the tax-haven list are well-known companies and such federal contractors as American Express, Pepsi and Caterpillar.

GAO, searching publicly available data filed with the Securities and Exchange Commission, determined that 83 of the 100 largest publicly traded corporations and 63 of the 100 largest federal contractors maintain subsidiaries in countries generally considered havens for avoiding taxes. Dorgan and Levin said they requested the updated report from one several years ago because they are focused on combating offshore tax abuses, which they estimated cause $100 billion in lost U.S. tax revenue each year.

Full Story