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Citigroup Expects $20 Bln Hit If Senate Tax Bill Signed

Citigroup Inc.'s (C) Chief Financial Officer John Gerspach said that the bank expects to take a non-cash charge to earnings of about $20 billion if the U.S. Senate's version of the tax reform bill is enacted.

Gerspach said at an investor conference in New York that the hit to profit would mostly stem from the bank writing down its deferred tax assets in the period the bill is signed. About $3 billion to $4 billion of the charge would come from the taxation of unremitted foreign earnings.

"From what we understand in that tax bill, our best estimate would be in the year that bill gets signed we would probably have an upfront hit of $20 billion," Gerspach said.

The bank said at its July investor day that the charge could be $15 billion, a number that assumed a 25 percent corporate rate and a one-time repatriation of overseas earnings.

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