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Three big U.S. banks reported unsatisfactory revenue for the second quarter of this year, after being hit by a banker bonus tax paid to the U.K. government.
JP Morgan Chase, Citigroup, and Bank of America will pay more than 1 billion U.S. dollars to the U.K. government. Meanwhile, Goldman Sachs also took a big earnings hit, having just paid 550 million U.S. dollars to the Securities and Exchange Commission over civil charges that it duped clients buying mortage-backed securities. Now it's said to owe another 600 million dollars in bonus tax, leading to a substantial decrease in its second quarter revenue.
The U.K. bonus tax was announced at the end of 2009 and is aimed at curbing banks' excessive risk taking.
- EU to cap bonuses for bankers from next year 2010-07-01