What U.S. Tax Reform May Mean for Bank Earnings

The video discusses the challenges of the current earnings season, focusing on the implications of the new tax bill for investors and companies. It highlights the charges faced by banks like JP Morgan, Citigroup, and Goldman Sachs due to deferred tax asset write-downs and repatriation. Jamie Dimon's perspective on tax reform is also covered, emphasizing its potential economic benefits and impact on competitiveness, job creation, and wage growth.

What is the main concern for investors regarding the new tax bill?

• The influence on interest rates

• The impact on company earnings

• The effect on global trade

• The changes in consumer behavior

Which financial institution is expected to face the largest charge due to the tax bill?

• Goldman Sachs

• Citigroup

• JP Morgan

• Bank of America

What type of charges are financial institutions dealing with due to the tax bill?

• Interest rate hikes

• Higher operational costs

• Increased loan defaults

• Deferred tax asset write-downs

According to Jamie Dimon, what is a potential benefit of tax reform?

• Decreased government spending

• Increased US competitiveness

• Lower inflation rates

• Reduced unemployment benefits

What economic benefits does Jamie Dimon associate with tax reform?

• Higher interest rates

• Lower corporate taxes

• Reduced trade deficits

• Increased capital spending