Citigroup CFO Sees $20B Hit If Senate Tax Bill Passes

The video discusses the concept of deferred tax assets, focusing on Citigroup's financial history and its significant tax loss carryforwards from 2008 and 2009. These losses have been used to offset future income taxes, making them valuable assets. However, proposed corporate tax reforms could reduce the value of these assets, impacting Citigroup's financial strategy. The video also compares Citigroup's situation with other banks like JP Morgan, highlighting differences in domestic banking operations and the varying impacts of tax reforms.

What financial event led to Citigroup's creation of tax loss carryforwards?

• An increase in corporate tax rates

• A merger with another bank

• Significant operating losses in 2008 and 2009

• A major acquisition

How does a reduction in corporate tax rates affect the value of deferred tax assets?

• It makes them obsolete

• It decreases their value

• It has no effect on their value

• It increases their value

Why is Citigroup's deferred tax asset considered a 'secret weapon'?

• It increases the company's market share

• It can offset future income taxes

• It reduces operational costs

• It allows for higher dividends

Which bank is likely to be less affected by the deferred tax asset hit due to tax reform?

• JP Morgan

• Wells Fargo

• Citigroup

• Bank of America

What is a key reason Citigroup might benefit less from tax reform compared to other banks?

• It has a larger international presence

• It has a smaller domestic business

• It has more deferred tax assets

• It has higher operating costs