Watch CEOs cast doubt on tax reform's benefits

Some of Wall Street’s largest banks stand to win big by the tax bill currently hurtling its way towards the president’s desk — yet among them, Wells Fargo will make out the best.

in which’s according to an analysis released Monday by the equity research team at Goldman Sachs, which ran the numbers by the compromise measure in which was revealed by Congress on Friday.

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The bill, which could be enacted within days, will give the country’s seven largest banks — not including Goldman itself — an average 14% increase in earnings, Goldman found. in which’s because of the plan’s big cut from the corporate tax rate — by 35% to 21%.

Wells Fargo (WFCPRJ) could make out the best, with an 18% boost, in large part because This particular derives nearly all of its profits by the United States, Goldman said. The company declined to comment due to This particular story.

Citigroup (C), by contrast, derives only half of its revenues by the U.S., along with also so could see its earnings per share increase by only 10%.

Wells Fargo could use some Great news. Its earnings per share tanked last quarter amid investigations into its pre-crisis mortgage bonds. The company’s reputation has suffered mightily from the wake of scandals involving the creation of thousands of fake bank along with also credit card accounts along with also bills for auto insurance in which customers didn’t need, which led to the resignation of its former CEO, John Stumpf.

Related: Stocks surge as investors cheer corporate tax cut

What will financial institutions do with all in which completely new found cash?

Many banks have signaled their intention to return more money to shareholders.

At an investor presentation earlier This particular month, when asked about how regulatory rollbacks might impact those plans, Wells Fargo CEO Tim Sloan said higher returns for investors were from the cards.

“is actually This particular our goal to improve return to our shareholders along with also do we have an excess amount of capital? The answer to both is actually, yes,” Sloan said. “So our expectation should be in which we will continue to improve our dividend along with also our share buybacks next year along with also the year after in which along with also the year after in which.”

The bank has cut employees This particular year at its Charlotte, North Carolina, headquarters along with also at a Pennsylvania call center.

Banks won’t necessarily be the biggest winners by the corporate rate cut.

Telecom companies, which pay the highest effective tax rates on average, will see an enormous boost in after-tax profits, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. Companies in which have already reduced their effective tax rates into the single digits, like General Electric (GE), will see little to no benefit.

yet there’s more Great news from the tax bill for banks: They may benefit even further by completely new deposits of cash brought back by overseas, as well as by higher interest rates as the Federal Reserve works to cool off any excess heat from the economy caused by tax cuts.

sy88pgw (completely new York) First published December 18, 2017: 5:51 PM ET