Morgan Stanley to Take $1.25 Billion Hit for U.S. Tax Revamp
- Charge of about $1.4 billion mostly from deferred tax assets
- Citigroup, JPMorgan have warned of similar blows to earnings
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Morgan Stanley said it will take a roughly $1.25 billion hit to earnings in the fourth quarter, becoming the latest bank to detail how profit will be hurt in the near term by the U.S. tax overhaul driven by President Donald Trump.
The drag on net income consists of a charge of about $1.4 billion, primarily from writing down its U.S. deferred tax assets, the company said in a filing Friday. That’s being offset by a gain of about $160 million related to a multiyear tax examination. The estimated tax provision is based on assumptions made by the firm and may change as it receives additional clarification, it said.