Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Citi Tumbles After CFO Warns Of $20 Billion Charge If Senate Tax Bill Passes

Courtesy of ZeroHedge. View original post here.

Citi stock tumbled, closing at session lows after the bank's CFO John Gerspach  confirmed that the trading woes plaguing other banks would impact it as well, previewing Q4 trading as down "in the high teens." The percentage decline in trading revenue from a year earlier is largely driven by the bank’s fixed-income unit, Gerspach said on Wednesday at an investor conference in New York.

He added that G10 rates- and G10 currencies-trading have been challenged in quarter, although the woes were offset by Citi’s co-brand credit-card deal with Costco Wholesale Corp. which has been a bigger success than expected.

However the bigger surprise was the Gerspach's disclosure that he expects the bank to take a noncash earnings charge of about $20 billion if the Senate’s version of the tax reform bill is enacted.  He explaine that the hit to profit would result in part from writing down deferred tax assets in the period the bill is signed.  The number is far greater than what the company had provisioned, and analysts had expected previously expected a writedown of around $12 billion.

Which is odd since the entire tax law was written with banks pardon corporations in mind.

While there was no explanation as of publication time on what precisely would be the catalyst behind this massive loss – although it likely has to do with the impact of taxation on repatriated earnings – the stock was not happy and closed at session lows, dragging other money-center banks down with it.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!