Goldman Sachs to Take One-Time $5 Billion Tax Hit

The video discusses the impact of tax reforms on major banks, focusing on Goldman Sachs' $5 billion tax hit due to repatriation and deferred tax assets. Other banks like JP Morgan and Citigroup also face significant tax impacts. Despite these one-time losses, the market remains optimistic about the long-term benefits of a lower corporate tax rate. However, foreign banks like Credit Suisse and Barclays express concerns about ongoing negative effects due to the tax changes.

Why did Goldman Sachs report a $5 billion tax hit in 2017?

• To comply with international tax standards

• To increase their deferred tax assets

• Because of repatriation and accounting rules

• Due to a new tax law effective from 2018

How did JP Morgan report their tax impact differently from Goldman Sachs?

• They reported a higher tax hit

• They filed an official 8K report

• They estimated it in a presentation

• They did not report any tax impact

What is the market's reaction to the tax reforms affecting banks?

• The market has not reacted to the tax reforms

• Investors are optimistic about future tax benefits

• The market is worried about the one-time losses

• Investors are selling off bank stocks

What concern do foreign banks like Credit Suisse and Barclays have regarding the tax changes?

• The changes may penalize money movement out of the US

• They will face no impact from the changes

• The changes will increase their tax rate

• They will benefit from a lower corporate tax rate

How might the calculation basis affect foreign banks under the new tax changes?

• A gross basis calculation could be damaging

• A net basis calculation could be damaging

• Both net and gross basis calculations are beneficial

• The calculation basis has no impact