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Sunday, Sep 22
Judge rejects BB&T's bid to get back $688M in taxes and penalties
- A U.S. Court of Federal claims has rejected BB&T's (BBT) request to recover at least $688M in taxes and fines over an elaborate tax-avoidance scheme called STARS that was set up with Barclays.
- Calling the conduct of the participants "nothing short of reprehensible," Judge Thomas Wheeler described STARS as "an economically meaningless tax shelter" that was "rife with...conflicts of interest, (and) questionable pro forma legal and accounting opinions."
- As a result of the verdict, BB&T expects to book a $250M charge this quarter, adding to the $281M that the company provisioned in February.