BofA, Goldman to pay $1 bln in UK bank bonus tax

* BofA to pay $465 mln, Goldman Sachs more than $600 mln

* Banks expect to record bonus tax charges in Q2

By Joe Rauch

CHARLOTTE, N.C., May 7 (BestGrowthStock) – A British tax on bank
executives’ bonuses will cost two of the biggest U.S. banks a
combined $1 billion.

Bank of America Corp (BAC.N: ), the largest American consumer
bank, expects a $465 million compensation and benefits charge
from the UK tax on its British bonus payments, the bank said in
a first-quarter report filed with U.S. securities regulators.

Goldman Sachs Group Inc (GS.N: ) expects to pay more than
$600 million for the UK tax, according to accounts filed last
week by its London arm, Goldman Sachs International.

The so-called UK banker bonus tax, announced in December,
assesses a 50 percent charge on bonuses above 25,000 pounds
($40,250) paid between Dec 9, 2009, and April 5, 2010.

Since the tax was announced, estimates indicate top global
banks may pay more than 2 billion pounds ($2.9 billion) in
total for bonus payments.

UK banks took charges for the tax in their 2009 accounts,
but most European and U.S. banks will account for the tax in
their 2010 accounts, as the tax was not fully enacted until
this year.

Other major U.S. banks, like JPMorgan Chase & Co (JPM.N: )
and Citigroup Inc (C.N: ), have yet to disclose specific

Stock Market News

($1=.6816 pound)
(Reporting by Joe Rauch; additional reporting by Steve Slater
in London; editing by John Wallace.)

BofA, Goldman to pay $1 bln in UK bank bonus tax