Morgan Stanley Expects $1.25 Billion Hit From Tax Overhaul
Morgan Stanley (MS) on Thursday said it expects its fourth-quarter earnings to include a $1.25 billion hit from the recently enacted tax overhaul legislation.
In a regulatory filing, Morgan Stanley said it will post a $1.4 billion tax provision, largely from writing down the value of deferred tax assets, which are past losses and other items that can be used to defray future tax bills.
However, that provision will be partially offset by a $160 million net benefit, primarily from the remeasurement of reserves and related interest from the status of multi-year Internal Revenue Service tax examinations.
Morgan Stanley's announcement follows similar ones from other banks. Goldman Sachs Group Inc. (GS) last week said it would record a $5 billion charge related to the tax overhaul, while Bank of America Corp. (BAC) expects earnings to be hurt by $3 billion, largely from write-downs on deferred tax assets.
Morgan Stanley shares were flat premarket.
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(END) Dow Jones Newswires
January 05, 2018 07:34 ET (12:34 GMT)