Big Banks Set To Pay Out $90 BILLION After Trump Tax Law
June 22, 2018
Big banks could soon pay out as much as $90 billion to their wealthy shareholders and CEOs, thanks in large part to Trump’s tax law and laxer protections on Wall Street. Read below:
New York Times: What Stress? It's Good to Be a Bank
By Peter Eavis
What a time to be a bank.
After making it through the annual, government-run stress tests on Thursday, the largest United States banks could soon be free to pay out as much as $90 billion in spare profits to their shareholders.
That banks are in such a position highlights the remarkable change in fortunes for an industry that was on life support a decade ago.
Banks have more than doubled their capital, their main financial defense against losses. Profits are surging on the back of the stronger economy, and bank stocks have risen more than the broader stock market since the election of Donald J. Trump. Wall Street’s chief executives are enjoying hefty paydays. The Trump administration has started to relax post-crisis regulation, and banks are angling for more loosening. Lenders are embracing exciting new technologies that could revolutionize parts of their industry.
The six largest American banks — JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley — have done particularly well. They made $141 billion in pretax profits in 2017, nearly double the $75 billion they made in 2010. The tax cuts enacted last year have provided a particularly large lift to the bottom lines of banks. A strengthening economy and higher interest rates are expected to further increase earnings this year.