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UK TAX TO COST US BANKS $2BN

US banks will foot a total bill of about $2bn in their second-quarter results to pay for the UK tax on bankers' bonuses – a charge that could significantly reduce earnings at financial groups such as Citigroup, JPMorgan Chase and Bank of America.

The amounts to be paid by US banks, with Goldman Sachs alone in line for a $600m-plus charge, will contribute to a windfall of £2.5bn from the levy, larger than expected by the British authorities.

Analysts say the tax will be a negative factor when US banks report results for the April-June period next month, reducing earnings per share at Citi, JPMorgan and BofA by some 10 per cent or more.

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