By Joe Rauch
CHARLOTTE, N.C., May 7 (Reuters) - A British tax on bank executives' bonuses will cost two of the biggest U.S. banks a combined $1 billion.
Bank of America Corp, the largest American consumer bank, expects a $465 million compensation and benefits charge from the UK tax on its British bonus payments, the bank said in a first-quarter report filed with U.S. securities regulators.
Goldman Sachs Group Inc expects to pay more than $600 million for the UK tax, according to accounts filed last week by its London arm, Goldman Sachs International.
The so-called UK banker bonus tax, announced in December, assesses a 50 percent charge on bonuses above 25,000 pounds ($40,250) paid between Dec 9, 2009, and April 5, 2010.
Since the tax was announced, estimates indicate top global banks may pay more than 2 billion pounds ($2.9 billion) in total for bonus payments.
UK banks took charges for the tax in their 2009 accounts, but most European and U.S. banks will account for the tax in their 2010 accounts, as the tax was not fully enacted until this year.
Other major U.S. banks, like JPMorgan Chase & Co and Citigroup Inc, have yet to disclose specific figures.
($1=.6816 pound)
(Reporting by Joe Rauch; additional reporting by Steve Slater in London; editing by John Wallace.)
((joe.rauch@thomsonreuters.com; +1 704 692 5885; Reuters Messaging: joe.rauch.reuters.com@reuters.net)) Keywords: BANKS/TAX
* BofA to pay $465 mln, Goldman Sachs more than $600 mln
* Banks expect to record bonus tax charges in Q2
(Adds Citigroup and Morgan Stanley tax payment details, recasts first paragraph)
By Joe Rauch
CHARLOTTE, N.C., May 7 (Reuters) - A British tax meant to curb banker bonuses earlier this year will cost three of the biggest U.S. banks roughly $1.4 billion.
Bank of America Corp, the largest American consumer bank, expects a $465 million compensation and benefits charge from the UK tax on its British bonus payments, the bank said in a first-quarter report filed on Friday with U.S. securities regulators.
Late on Friday, Citigroup Inc also disclosed in its quarterly filing a roughly $400 million charge for the bonus tax in second quarter.
Goldman Sachs Group Inc expects to pay more than $600 million for the UK tax, according to accounts filed last week by its London arm, Goldman Sachs International.
The so-called UK banker bonus tax, announced in December, assesses a 50 percent charge on bonuses above 25,000 pounds ($40,250) paid between Dec 9, 2009, and April 5, 2010.
Since the tax was announced, estimates indicate top global banks may pay more than 2 billion pounds ($2.9 billion) in total for bonus payments.
UK banks took charges for the tax in their 2009 accounts, but most European and U.S. banks will account for the tax in their 2010 accounts, as the tax was not fully enacted until this year.
JPMorgan Chase & Co and Morgan Stanley have yet to disclose the impact of the UK levy on its upcoming second quarter earnings.
Morgan Stanley, in its first quarter report, said it is still evaluating the impact and will record a charge in the second quarter.
($1=.6816 pound)
(Reporting by Joe Rauch; additional reporting by Steve Slater in London, Dan Wilchins and Steve Eder in New York; editing by John Wallace and Carol Bishopric) Keywords: BANKS/TAX (joe.rauch@thomsonreuters.com; +1 704 692 5885; Reuters Messaging: joe.rauch.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
CHARLOTTE, N.C., May 7 (Reuters) - A British tax on bank executives' bonuses will cost two of the biggest U.S. banks a combined $1 billion.
Bank of America Corp, the largest American consumer bank, expects a $465 million compensation and benefits charge from the UK tax on its British bonus payments, the bank said in a first-quarter report filed with U.S. securities regulators.
Goldman Sachs Group Inc expects to pay more than $600 million for the UK tax, according to accounts filed last week by its London arm, Goldman Sachs International.
The so-called UK banker bonus tax, announced in December, assesses a 50 percent charge on bonuses above 25,000 pounds ($40,250) paid between Dec 9, 2009, and April 5, 2010.
Since the tax was announced, estimates indicate top global banks may pay more than 2 billion pounds ($2.9 billion) in total for bonus payments.
UK banks took charges for the tax in their 2009 accounts, but most European and U.S. banks will account for the tax in their 2010 accounts, as the tax was not fully enacted until this year.
Other major U.S. banks, like JPMorgan Chase & Co and Citigroup Inc, have yet to disclose specific figures.
($1=.6816 pound)
(Reporting by Joe Rauch; additional reporting by Steve Slater in London; editing by John Wallace.)
((joe.rauch@thomsonreuters.com; +1 704 692 5885; Reuters Messaging: joe.rauch.reuters.com@reuters.net)) Keywords: BANKS/TAX
* BofA to pay $465 mln, Goldman Sachs more than $600 mln
* Banks expect to record bonus tax charges in Q2
(Adds Citigroup and Morgan Stanley tax payment details, recasts first paragraph)
By Joe Rauch
CHARLOTTE, N.C., May 7 (Reuters) - A British tax meant to curb banker bonuses earlier this year will cost three of the biggest U.S. banks roughly $1.4 billion.
Bank of America Corp, the largest American consumer bank, expects a $465 million compensation and benefits charge from the UK tax on its British bonus payments, the bank said in a first-quarter report filed on Friday with U.S. securities regulators.
Late on Friday, Citigroup Inc also disclosed in its quarterly filing a roughly $400 million charge for the bonus tax in second quarter.
Goldman Sachs Group Inc expects to pay more than $600 million for the UK tax, according to accounts filed last week by its London arm, Goldman Sachs International.
The so-called UK banker bonus tax, announced in December, assesses a 50 percent charge on bonuses above 25,000 pounds ($40,250) paid between Dec 9, 2009, and April 5, 2010.
Since the tax was announced, estimates indicate top global banks may pay more than 2 billion pounds ($2.9 billion) in total for bonus payments.
UK banks took charges for the tax in their 2009 accounts, but most European and U.S. banks will account for the tax in their 2010 accounts, as the tax was not fully enacted until this year.
JPMorgan Chase & Co and Morgan Stanley have yet to disclose the impact of the UK levy on its upcoming second quarter earnings.
Morgan Stanley, in its first quarter report, said it is still evaluating the impact and will record a charge in the second quarter.
($1=.6816 pound)
(Reporting by Joe Rauch; additional reporting by Steve Slater in London, Dan Wilchins and Steve Eder in New York; editing by John Wallace and Carol Bishopric) Keywords: BANKS/TAX (joe.rauch@thomsonreuters.com; +1 704 692 5885; Reuters Messaging: joe.rauch.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.