U.S. Banks Signal No V Recovery With Provisions Near Record
- Three major lenders set aside $28 billion for bad loans
- Dimon sees ‘not a normal recession’ as stimulus delays pain
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Swift action from the Federal Reserve and U.S. government staved off a pandemic-led spike in missed loan payments. The message from the nation’s biggest banks: It’s coming.
JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. set aside almost $28 billion for bad loans in the second quarter, a mark only surpassed by the last three months of 2008, during the depths of the financial crisis. The total was higher than analysts had expected, with all three lenders saying their economic outlook had deteriorated as the coronavirus continues to rage through the U.S.