tag:blogger.com,1999:blog-2761684730989137546.post8415184030612854036..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: Doubts over U.S. bank capital payouts may cloud strong earningsmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2761684730989137546.post-82498535962973182752018-04-12T15:58:50.018-04:002018-04-12T15:58:50.018-04:00Yeah idiot me I want the system to be optimized......Yeah idiot me I want the system to be optimized....Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-34817504231361168502018-04-12T15:13:34.346-04:002018-04-12T15:13:34.346-04:00Poor banks.
Poor bank shareholders.
Where's ...Poor banks.<br /><br />Poor bank shareholders.<br /><br />Where's my handkerchief?<br /><br />Lower corporation tax means that they pay less tax in a good year but also that the value of the tax credit they receive (should they make an operating loss) is also reduced, and they can no longer carry the losses back and redeem them against an earlier profit. A small price to pay, I think.<br /><br />In short, a lower tax on profits means that bank net earnings will be more volatile (79% of something is more volatile than 65% of something), and the prevention of carry backs will make them a little bit more volatile. Isn't the world unfair?<br /><br />They should Quit whining! They mad enough through the bank bail outs when they should have went to the wall.<br /><br />They've had a massive tax cut. That makes their earnings more volatile, mostly in a nice way. So they should now hold some more capital.<br /><br /><br />(Next up - Wall Street complains that lower tax rates make the purchase of a new corporate jet less attractive since it can only expense 21%, rather than 35%, of the expense.)<br /><br /><br />Sometimes I wonder why you support the banking cartels so much Matt.Footsoldierhttps://www.blogger.com/profile/06061374661482934570noreply@blogger.com