Trump's tax cut could hand Wall Street banks a $6.4 billion profit boost

Big banks could see profits spike by $6.4 billion under President Donald Trump's tax plan.

The six largest US banks - JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley - stand to reap a massive windfall that would boost net income by 7% if the plan, which cuts the corporate tax rate to 20% from 35%, successfully clears Congress, according to a Bloomberg report.

The big-six banks, which paid an average federal tax rate of 26% last year, would have an outsized benefit from the tax plan as they claim fewer deductions than most companies.

Bloomberg's analysis assumes a 20% effective tax rate for the banks, but the savings could be even greater if certain deductions are left in place.

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