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Trump's Tax Cuts Let Banks Off the Hook for Lousy Trading Results

  • Firms set to get $10 billion boost to earnings from tax cuts
  • Tax bill also gives lift to asset management, banking units
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BofA Takes $2.9 Billion Tax Code Charge in 4Q

Republican tax cuts are saving the day for Wall Street banks.

The sweeping tax overhaul means billions of dollars in profit will materialize from thin air for the industry, allowing executives the luxury of planning to increase dividends and stock repurchases, invest more in technology and even do some good by extending credit to low-income borrowers. That’s all taking away attention from what probably would’ve been the focus of analysts and investors: Lousy trading results.