Trump Tax Cut Means Billion-Dollar Writedowns at Banks – Availability Ends

President-Elect Trump promised significant cuts to personal and corporate taxes in his campaign. The Republican Congress and Senate are thought to be supportive of cuts, albeit not necessarily to the extent proposed by Trump. The following link is to a Bllomberg article describing the anticipated impact of the tax change on banks earnings (both short and long term) as well as regulatory capital.

How do you think bank stock investors will react to the tax cut once it is enacted? Why?

The article mentions that there will not be much impact on banks’ regulatory capital maintenance (a critical success factor in the industry). This is because deferred tax assets are largely excluded from the calculation of regulatory capital.

Why do you think regulators exclude certain deferred tax assets? Do you agree with their position?

Do you have an upcoming essay or assignment due?

If you are looking for a similar or different assignment contact us for help by placing an order anonymously and it will be delivered in time.

Get Started & Get it within 6 Hours Order & Get it within 12 Hours

You can trust us for this and even for your future projects