A lower corporate tax rate as called for in the tax framework unveiled by the Trump administration Wednesday should immediately boost banks’ own profits. Last quarter, it reported a 45.5% tax rate largely due to overseas losses it couldn’t deduct. Executives have said a lower rate would benefit that, as well as help support the company’s dividend. The deferred tax assets of banks including Citigroup and Bank of America would lose value if the tax rate was lowered to 20%. That would lead to a write-down of around $3 billion if the tax rate was lowered to 20%.

Source: Wall Street Journal September 28, 2017 11:00 UTC