America’s biggest banks reported earning enormous second-quarter profit margins, largely because of the Trump tax law. Meanwhile, workers’ wages have decreased.
Big banks are the biggest beneficiaries of the Trump tax law.
- Bank of America earned a second-quarter profit of $6.78 billion, a 33 percent jump from a year earlier.
- JPMorgan Chase earned a second-quarter profit of $8.32 billion, an 18 percent jump from a year earlier.
- Citigroup earned a second-quarter profit of $4.49 billion, a 16 percent jump from a year earlier.
Big banks saw their tax bills drop substantially thanks to the Trump tax law.
- Bank of America’s tax bill dropped by more than $1 billion.
- JPMorgan’s tax bill dropped by roughly 17 percent.
Meanwhile, workers’ wages have decreased over the past year and banks are charging their customers more.
- Paychecks continue to lag behind rising prices, causing real wages to fall by 1.4 percent over the last year.
- While reaping massive tax savings, big banks are charging higher rates to their customers.