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News Link • Economy - Economics USA

Burger King Flips Obama the Bird; BK, Warren Buffet, Greg Mankiw, Barry Ritholtz...

On July 24 Obama referred to companies looking to shift their domicile as "corporate deserters" and aides pledged to curtail the practice with or without Congressional approval.

Since then, no companies have announced any of these deals -- known as inversions -- and it's no coincidence, according to lawyers and investment bankers. The presidential rhetoric has caused several companies exploring inversions to put on the brakes to see what emerges from the political debate, people familiar with the preparations said.

Between mid-June and late-July, when Obama ramped up his criticism of the deals by calling companies that strike them "corporate deserters," at least five large American companies announced plans for inversions, including AbbVie Inc. and Medtronic Inc. (MDT) Since the start of 2012, 21 U.S. companies have announced or completed such deals, or almost half the total of 51 such transactions in the last three decades.

After Obama called for "economic patriotism" from business leaders in July, Treasury Secretary Jack Lew said the agency was examining options for new rules that wouldn't require Congressional sign-off.

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