Royal Dutch Shell () says it will take a fourth-quarter charge between $2 billion and $2.5 billion in the fourth quarter thanks to the GOP tax overhaul that was passed by Congress and signed by President Trump this month.
Barclays (BCS) - Get Report echoed that sentiment, saying it would take a noncash charge of $1.3 billion in the fourth quarter due to the changes in U.S. tax law. The charge, along with other restructuring costs, is expected to push the U.K. bank into the red for the year.
"It is possible that any impact of [the base erosion measures] could significantly reduce the benefit of the reduction in the statutory U.S. federal rate," Barclays said, according to the Wall Street Journal.
Specifically, the tax plan will force the British bank to reduce the value of its deferred tax assets, resulting in the one-time charge. Long term, Barclays still sees a benefit from the tax plan.
Royal Dutch Shell's increased tax burden is also the result of a revaluation of its deferred tax assets.
RDS shares were down 0.12% on the news while Barclays shares were basically flat in trading Wednesday.
More of What's Trending on TheStreet: