The Wall Street Journal: Citigroup likely to take $20 billion hit from Republicans’ tax plan

Citigroup Inc. finance chief John Gerspach said Wednesday the bank is likely to take a hit of about $20 billion to profits under the tax plans recently passed by Congress.

The charge will result from the bank writing down the value of what are known as deferred tax assets as well as the impact of changes to rules regarding the repatriation to the U.S. of profits earned in other countries.

Gerspach’s comments, made at a financial-services conference in New York, build on previous guidance given by the bank that tax-code changes could result in a hit of about $15 billion if the rate was cut to 25%. Over the long term, though, any immediate hit to profits at Citigroup C, -1.44%  and other banks with these tax assets are likely to be offset by higher net income due to a lower tax rate.

Gerspach said that neither the charge, nor a resulting $4 billion decline in the bank’s regulatory capital, would affect Citigroup’s plan to return $60 billion to investors through 2020.

An expanded version of this report appears on WSJ.com

Also popular on WSJ.com:

GM takes costly step to keep up pace in pickups

Law schools say: Please come, no LSAT required

Filed in: Top News Tags: 

You might like:

God-fearing countries are among the least wealthy—with one notable exception God-fearing countries are among the least wealthy—with one notable exception
America’s 1% hasn’t controlled this much wealth since before the Great Depression America’s 1% hasn’t controlled this much wealth since before the Great Depression
Women don’t see men who drive flashy cars as husband material Women don’t see men who drive flashy cars as husband material
The New York Post: Trump dubs himself ‘your favorite president’ in tweet about Michael Cohen tape The New York Post: Trump dubs himself ‘your favorite president’ in tweet about Michael Cohen tape
The Wall Street Journal: Cease-fire in place between Israel and Hamas in Gaza Strip The Wall Street Journal: Cease-fire in place between Israel and Hamas in Gaza Strip
The New York Post: New York Giants owner says Trump lacks understanding of NFL players’ anthem protests The New York Post: New York Giants owner says Trump lacks understanding of NFL players’ anthem protests
The New York Post: Most of music business’s top money makers in 2017 had been at it for decades The New York Post: Most of music business’s top money makers in 2017 had been at it for decades
The New York Post: ‘Stand your ground’ law to protect Florida parking-lot shooter from prosecution The New York Post: ‘Stand your ground’ law to protect Florida parking-lot shooter from prosecution

Leave a Reply

Submit Comment
© 2018 Stock Investors News. All rights reserved. XHTML / CSS Valid.