A corporate tax cut is usually a cause for celebration in the financial sector. In the topsy-turvy world of bank capital, however, things are rarely that simple. For banks, the effect of December 2017’s headline cut in the rate of US corporate tax from 35% to 22% can be summarised as: pain now, pleasure later.
When US president Donald Trump’s signature tax reforms were signed into law, banking chiefs from JP Morgan’s Jamie Dimon to Citigroup’s Michael Corbat cheered its passage, claiming it
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