Interestingly, under U.S. government ethics rules, while Paulson is required to sell the shares, he is also exempt from paying taxes on any capital gains on the sale if he obtains a certificate of divestiture. The rule granting the exemption is designed to make sure prospective government employees who own a lot of stock are not dissuaded from joining the government.
Earlier this week, the Economist magazine estimated the rule eliminate a tax liability of up to about $200 million for Paulson.
The irony here is great. Here the biggest of the big wigs got to cash out tax free.
Now he is trying to fix the mess he and the other big wigs created.
Who says irony is dead?
Paulson bailout a Historic Swindle