Citigroup Wins $183 Million Refund Over Bank Merger Deal Losses

Citigroup, Inc. is entitled to a $183 million tax refund because it proved it had rights in a deal with the government to amortize nearly $800 million in liabilities a predecessor incurred from absorbing a failing bank, the US Court of Federal Claims held.

Citigroup can receive the deduction for its 2005 tax year on recapitalization efforts stemming from a loss of so-called RAP rights its predecessor, Glendale Federal Bank FSB, suffered when Congress enacted the Financial Institutions Reform, Recovery, and Enforcement Act in 1989, the US Court of Federal Claims held Wednesday.

The court said that Citigroup had shown ...