(Bloomberg) – Rapid action by the Federal Reserve and the United States Government prevented a spike in late loan payments caused by the pandemic. However, the country’s largest banks say the problem is on the way.
JPM), Citigroup (C) y Wells Fargo (WFC). They set aside nearly $ 28 billion for bad loans in the second quarter, a mark only surpassed in the last three months of 2008, during the height of the financial crisis. The total was higher than analysts anticipated. All three lenders said their economic outlook had deteriorated due to the continued spread of the coronavirus in the US.” data-reactid=”33″>JPMorgan Chase (JPM), Citigroup (C) y Wells Fargo (WFC). They set aside nearly $ 28 billion for bad loans in the second quarter, a mark only surpassed in the last three months of 2008, during the height of the financial crisis. The total was higher than analysts anticipated. All three lenders said their economic outlook had deteriorated due to the continued spread of the coronavirus in the US.
rising unemployment, stimulus programs have helped people keep up with debts, and many have taken advantage of deferred payment options offered by banks. JPMorgan said delinquencies in its major consumer loan categories had either declined or not changed from the previous year, and most credit card and mortgage customers authorized to defer installments had made the payments. “Data-reactid = “34”> Even with the rising unemployment, stimulus programs have helped people keep up with debts, and many have taken advantage of deferred payment options offered by banks. JPMorgan said delinquencies in its major consumer loan categories had either declined or not changed from the previous year, and most credit card and mortgage clients authorized to defer installments had made the payments.
“This is not a normal recession. We will see the recessive part of this later, ”Jamie Dimon, chief executive of JPMorgan, said Tuesday. “We will see the effect of this recession. We just won’t see it right away because of all the encouragement. “
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US bank provisions do not point to recovery in V
the bank’s first net loss since 2008 and an 80% cut in dividends. The money tables of JPMorgan and Citigroup capitalized on large market swings and recorded record quarters, helping these companies maintain profitability. “data-reactid =” 56 “> Wells Fargo made the largest provision for bad loans in its history, causing the bank’s first net loss since 2008 and an 80% cut in dividends. The money tables of JPMorgan and Citigroup they took advantage of large market swings and posted record quarters, helping these companies maintain profitability.
coronavirus como otros países. JPMorgan ahora estima que la tasa de desempleo se mantendrá por encima de 10% para todo 2020, y caerá solo a 7,7% para fines del próximo año." data-reactid="57">Even dynamic markets failed to avoid the blow of the new economic reality caused by the US failure to contain the spread of the coronavirus like other countries. JPMorgan now estimates that the unemployment rate will remain above 10% for all of 2020, and will drop to just 7.7% by the end of next year.
Second-quarter provisions bring the 2020 total of the three banks to $ 47 billion, more than the total reserves of those companies in the last three years combined.
The pessimism of the banks’ forecasts contrasts with Washington’s estimates. The White House is forecasting a strong economic recovery and says the estimate remains intact despite the advance of the virus and the threat of new quarantines.
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