United capital self liquidating loan

He concluded that, if they had been subject to the net capital rule as it existed before the 2004 rule change, broker-dealers would not have been able to incur their high debt levels without first having increased their capital bases.

Since 2008, many commentators on the financial crisis of 2007-2009 have identified the 2004 rule change as an important cause of the crisis on the basis it permitted certain large investment banks (i.e., Bear Stearns, Goldman Sachs, Lehman Brothers, Merrill Lynch, and Morgan Stanley) to increase dramatically their leverage (i.e., the ratio of their debt or assets to their equity).Corporations are also subject to a federal Alternative Minimum Tax and alternative state taxes.Like individuals, corporations must file tax returns every year. Controlled groups of corporations may file a consolidated return. These include most formations and some types of mergers, acquisitions, and liquidations.Corporate tax is imposed in the United States at the federal, most state, and some local levels on the income of entities treated for tax purposes as corporations.Federal tax rates on corporate taxable income vary from 15% to 35%.