Money Makers Mentor

Major Banks Set Aside $25 Billion to Prepare for Coronavirus Loan Losses

America’s three biggest banks have reserved billions of dollars to cover potential coronavirus loan losses in the third and fourth quarter. JPMorgan Chase, Wells Fargo and Citigroup together compiled $25 billion during the second quarter.

JPMorgan Chase added nearly $11 billion to the fund in the second quarter. Additionally, Citigroup added $5.6 billion, while Wells Fargo added $8.4 billion.

Likewise, all three banks expect businesses and consumers to struggle to repay their loans. They figure that the pandemic will trigger a prolonged recession in the United States, leading to coronavirus loan losses.

“COVID-19 has brought to the forefront the racial, economic and social inequalities that exist in our communities,” Citigroup CEO Michael Corbat said in a recent statement. “Part…

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