/www.reuters.com/article/us-india-missiles/india-test-fires-missile-amid-perceived-threats-from-china-pakistan-idUSKBN1F71KY?il=0
Bank stocks hit hard by reduced Corp tax rate.
Banks took massive losses during 08 financial crises. Losses that had to be carried forward to be used against future gains. Banks value that future adjustment on their Corp tax rate. When tax rate drops, the balance sheet item isn’t worth as much.
Fancy name deferred tax assets. Banks can use past losses for future 20 yrs. lower tax rate means the losses won’t be used up in 20 yrs, then banks will have to write it off.
Bank of America and Citigroup have huge deferred tax assets- $19 bn & $47 bn. The write off will be huge $4-$12 bn combined.
Watch stock market. Too big to fails jammed every dime into their deferred tax assets category in 08. When it was clear HRC would win, they added more because tax rates would continue at same level or higher for next 4-8 yrs. Did they take on riskier loans in 2016?
If they paid off, banks were write off gains against deferred tax asset. If they didn’t, added to same. Or, lobby to get govt the bail them out again.
Who’s largest shareholders of these banks? How much did they contribute to HRC campaign?
Make a circle back to AlWaleed -Aramco IPO. Who else will lose bigly?.
BOA loses 48% value www.detroitnews.com/story/business/2018/01/17/earns-bank-america/109533956/
Morgan Down 59% apnews.com/979b55594bd44ac7b6fa186b85745194/Morgan-Stanley's-profits-fall-59-percent-due-to-tax-bill
Citigroup ww2.cfo.com/financial-performance/2018/01/citigroup-takes-22b-charge-tax-law-adjustments/
$700 bn was spent to bail out these companies in 2008. projects.propublica.org/bailout/list