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Four largest U.S. banks cashed in $2.3 billion thanks to new tax law

Signage with logo for Chase Bank in the Financial District neighborhood of San Francisco.
Chase Bank in San Francisco's Financial District. Photo: Smith Collection / Gado / Getty Images

The latest overhaul of the American tax system has allowed four of the largest American banks to cash in a combined $2.3 billion in just one quarter, reports the Wall Street Journal.

The details: The increased earnings for JPMorgan Chase, Wells Fargo, Citigroup and Bank of America came from the corporate tax rate that dropped from 35% to 21%. Per the WSJ, if the law wasn't enacted, Wells Fargo’s earnings would have declined in 2017 and the year-to-year growth seen at Citigroup and Bank of America would have been diminished. JPMorgan's revenue growth would have reportedly been slashed to 28% from 35%.