What about the new tax law would lead JPM to lose $2.4B and WFC to gain $3.4B?
I think I understand the concept of deferred tax assets, and the difference between TAX accounting and FINANCIAL accounting. However, if both JPM and WFC both had deferred tax assets on the books, shouldn't they both book a gain or loss? For instance, JPM owes 35% tax on $10B in 2018 and WFC owes 35% on $15B in 2018 that are on the books as deferred taxes. New law gets signed... boom, they both owe less taxes and book a gain.
If the discrepancy is because of JPM's offshore money, does that indicate they will definitely bring it back to the US? Or, might it still stay overseas in order to still avoid all tax?