U.S. regulators are turning a critical eye to the practice of dividend arbitrage, as banks rake in over $1 billion in annual revenue by exploiting the strategy, reports The Wall Street Journal. The strategy used to be an even bigger business earlier, before U.S. tax authorities made it harder to shrink dividend taxes on U.S.-listed stocks. Dividend arbitrage: A low-down on the strategy The complicated “dividend arbitrage” strategy is run largely from London, according to a report in the Wall Street Journal by Jenny Strasburg, where banks temporarily transfer ownership of a client’s shares to a lower-tax jurisdiction around the time…
Banks’ Role In Dividend Arbitrage Under Fed’s Radar
Mani
Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports