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Goldman Sachs, J.P. Morgan Pay $1 Billion+ to Britain (GS, JPM)

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Goldman Sachs (NYSE: GS) and J.P. Morgan (NYSE: JPM) are set to pay more than $1 billion to the British government as part of its new 50% tax on banker bonuses. Goldman Sachs has set aside $600 million and J.P. Morgan has set aside $550 million.

CNBC.com's John Carney notes, however, that "Since investors were well aware that the levy would hit the banks, it is unlikely that their share prices will suffer from the disclosures. Goldman, for instance, recently paid a $550 million fine to the SEC and saw its share price subsequently rise."

Morgan Stanley (NYSE: MS) has set aside $361 million, Bank of America (NYSE: BA) $425 million, and Citigroup (NYSE: C) $400 million. All told, the banks are expected to pay more than $2 billion the British government.

Carney reports that "Earlier this summer, the UK announced a new, permanent bank tax would be put in place in 2011. The new tax, which will hit Britain’s largest banks and foreign banks with U.K. operations, is expected to raise £2 billion ($3.1 billion) annually."

 

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