Which industry is raking in billions of dollars from the recent tax law? The major banks.
And who’s laying off tens of thousands of workers? The major banks.
- $10 Billion Windfall: With the new tax law ladling out more than $1 trillion in corporate tax breaks, the nation’s five largest banks will rack up an additional $10 billion in profits in spite of what Bloomberg News calls “lousy trading results.” Think they are keeping President Trump’s promise that, when corporations are flush with cash, they’ll create new jobs? Think again.
- Mass Layoffs Announced: At the end of 2017, as the tax cuts sailed through Congress, the six largest banks, including Citigroup and Wells Fargo, wiped out about 8,000 jobs. Despite the economic recovery, these banks have eliminated almost 150,000 jobs since 2011.
- Rewarding Shareholders: Bank executives have made it clear that their priorities are increasing dividends and stock repurchases and investing in new technologies, some of which will replace existing employees. For instance, Citigroup said it will pay out $60 billion to its investors.