Bank Holding Companies and Financial Holding Companies Generally Do Not

Bank holding companies and financial holding companies generally do not pay income tax because:

A) they are always chartered as non-profit corporations.
B) most of their income is subsidiary paid dividends, of which 80% is tax-exempt.
C) the subsidiaries always operate at a net loss.
D) bank holding companies must carry deposit insurance.
E) bank holding companies are not subject to Internal Revenue Service regulations.