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…