US banks to reveal big writedowns due to Trump’s tax reforms | Business

JP Morgan, America’s largest lender, kicks off the latest US bank reporting season with Wells Fargo todayEric Thayer/Reuters

America’s largest banks are to begin unveiling hefty fourth-quarter writedowns today because of tax reforms pushed through at the end of last year.

The value of certain tax assets held by the banks has plunged after Congress slashed the corporate rate to 21 per cent this year from 35 per cent.

The banks begin reporting their fourth-quarter financials today with results from JP Morgan, the largest US lender, and Wells Fargo, the fourth largest, expected before the markets open in New York this morning. Next week Citigroup and Bank of America, respectively the third and second largest US banks, will report alongside the leading investment banks Goldman Sachs and Morgan Stanley.

Because of the reforms, big banks are expected to write down the value of…

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