Seven Largest U.S. Banks Have Created Thousands Of Subsidiaries To Avoid Taxes: Fed Report

On Wall Street, there’s a benefit to developing into something big and complex.

America’s seven biggest banks now have more than 14,500 subsidiaries around the world, according to a new report by the Federal Reserve Bank of New York (h/t Bloomberg). They have hatched more than 10,000 of these subsidiaries since 1991, largely in an aim to skirt regulations and taxes, according to the report.

By stashing assets in foreign subsidiaries, banks can avoid U.S. taxes since the assets are subject to taxes in the country in which they are held. In addition, if the subsidiaries are in tax havens, the companies can pay taxes at a super low rate or, in some cases, not at all.

Rest here…

~

4closureFraud.org