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The climbdowns will cost the Treasury as much as £70m annually.
By closing the loopholes, the plan could bring the Treasury as much as $100 billion a year, according to various estimates cited by Mr. Levin.
But interest rates would rise for the Treasury as well as anyone else who borrows in dollars, including corporations and state governments.
The climbdowns follow weeks of protest, including by Tory MPs, and will together cost the cash-strapped Treasury as much as £70m annually.
As with coupon-bearing bonds, zeros are available from the U.S. Treasury as well as from corporations, and in taxable and tax-exempt varieties.
Mellon was Secretary of the Treasury, as well as the wealthiest man in America, and had invested heavily in nylon, DuPont's new synthetic fiber.
The case was alleged to have implicated top officials in the government treasury, as well as in the National Disaster Management Centre.
His decisions may have cost the Indian treasury as much as $40 billion, according to a government investigative report released last week.
Mr Geithner once described the Rubin Treasury as "an open competition of ideas".
Similar(2)
The company is regulated by the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury, as a money transmitter and is seeking state licenses.
Moreover, it has implications for the U.K. treasury, as a dividend cut would mean that there would be less in tax dollars paid attributable to the BP dividend.
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