CNBC: Citigroup drops on possible earnings hit if tax bill passes. Citigroup would take a $20 billion upfront hit from the Republican tax bill should it become law, the company's chief financial officer said during a presentation Wednesday.
The bank would take a big hit from writing off deferred tax assets it has held on its books, roughly $16 billion to $17 billion, John Gerspach said during a question-and-answer session at a Goldman Sachs banking conference in New York. And it would take a $3 billion to $4 billion hit from paying taxes on money it had held overseas.
Reuters: Citigroup expects 'high teens' percentage fall in fourth-quarter markets revenue.
Speaking at an investor conference held by bank stock analysts at Goldman Sachs, Gerspach said the decline is mostly due to lower trading in fixed income and compares with an especially strong period in 2016.