Bloomberg - Bank of America to take $3bn earnings cut

Bank of America expects to take a roughly $3 billion hit to fourth-quarter net income after the U.S. tax bill slashed corporate rates.

Bloomberg News reports that the reduction is “primarily” from a lower value of net deferred tax assets, according to a filing Friday by the Charlotte, North Carolina-based firm. So-called DTAs pile up in cases where a company loses money and can’t immediately enjoy the tax benefits of those losses.

The legislation signed into law on Friday by President Donald Trump slashes the corporate rate to 21 percent from 35 percent, meaning many firms will be forced to write down tax assets accumulated at higher rates. The Republican-drafted law also delivers a package of temporary cuts for businesses and most individuals.

Hit the link below to access the complete Bloomberg News article:

BofA Says Tax Act Forces $3 Billion Fourth-Quarter Earnings Cut

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