New Facebook Should Benefit Investors Long Term: DealBook Briefing
The highlights from the big bank’s latest earnings release:
• $4.2 billion in net income for the fourth quarter, down 34 percent because of $2.4 billion worth of charges related to the new tax law.
Five years ago, fixed-income trading — so called because its keystone product, bonds, typically provides a fixed payout —
generated nearly $103 billion in income for the top 12 investment banks, according to Coalition, a London research firm.
BlackRock reported adjusted net earnings of $3.7 billion for the year on Friday, up 16 percent for the year and easily beating analyst expectations.
The bank was not among the initial group of lenders on the margin loan “to an entity controlled by Steinhoff’s then chairman Christo Wiese to purchase additional shares
in the company in the fall of 2016.” But, as the WSJ reports, “losses from the margin loan were expected to have been spread among a wider group of banks.”
“The borrowing entity pledged 628 million Steinhoff shares as collateral on the loan, according to a company statement at the time.
The $300 million bill for the new hourly rate amounts to “just 0.3 percent of the company’s sales
and administration costs.” One analyst calculated Walmart’s overall tax savings at about $2.2 billion.