Congress feels pressure to expand bank securities powers
Article Abstract:
The current bid to repeal the Glass-Steagall Act would broaden the scope of banks' business to include securities and insurance sales. Banks have been empowered under recent court rulings to underwrite some forms of corporate debt, issue mortgage-backed securities, issue securities collateralized by bank consumer receivables, and provide investment guidance and insurance policies. This is being opposed by the insurance and securities industries. It is presumed in Congress that if the repeal is passed that competition among the banking and securities industries would result in lowering the costs of raising capital and financing corporate operations. An equally likely result would be competition among regional banks and securities firms. A vote is due in Mar 1988, but a moratorium of six months is possible.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1987
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If federal law eliminates unitary tax, dividends levy may also be history
Article Abstract:
The British Parliament is pressuring the United States to abolish unitary taxation, and the Reagan administration is backing a law that would ban the unitary tax, as well as existing state taxes on foreign dividends. Currently six states (California is the largest) have laws requiring multinational corporations to pay taxes on earnings of their foreign subsidiaries; 21 other states tax dividends that corporations within those states receive from foreign companies. Federal legislation will not be necessary, if California voluntarily repeals its unitary tax law and the other five states follow suit. If the states voluntarily repeal unitary tax laws, it is likely that the dividend tax will remain in place.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1986
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Protesters challenge FASB authority to set standards
Article Abstract:
The Financial Accounting Standards Board (FASB) has been challenged by a group of insurance firms and banks on its authority to set standards for business financial statements. FASB's recent statement on tax liability reporting for corporate balance sheets is key to the controversy. Declining tax rates for most corporations will boost their 'bottom line' and force those with large reserves to realize a windfall, because such reserves must be included as income on financial statements. The companies opposing the FASB have asked the SEC to intervene on their behalf, and are lobbying in Congress as well.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1988
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