The point is to prevent companies from buying assets solely for tax arbitrage or tax avoidance. But starting in 2009, Treasury began to issue regulatory "notices" that suspend this law when it comes to Treasury-owned stock. The provisions also apply to AIG and Citigroup.
so we taxpayers gave money in a bailout and then lost money in potential tax revenue.
Sorry liberals, you can't blame this one on greedy big business. This is all government doing.