Banks Double Loan Loss Reserves ‘Everybody Is Struggling’
Mike (Mish) Shedlock | Jul 19, 2020 07:19AM ET
The 4 biggest US banks nearly doubled amount set aside to cover soured corporate loans.
Everybody Is, Bluntly, Struggling ’ said Bill Demchak, CEO of PNC Financial Services Group (NYSE:PNC) on an earnings call.
h3 CEO, CFO, and Analysts Quotes/h3- PNC CEO: ‘Everybody Is, Bluntly, Struggling’ said Bill Demchak, CEO of PNC Financial Services Group on an earnings call. “The generic corporate client we talk to, who’s otherwise open and doing business, is almost without exception down from what they would have expected going into the year and down from where they were last year.”
- Citigroup (NYSE:C) CEO: “I don’t think anybody should leave any bank earnings call this quarter simply feeling like the worst is absolutely behind us and it’s a rosy path ahead,” Citigroup Inc (NYSE:C). Chief Executive Michael Corbattold analysts Tuesday. “I don’t want to be pessimistic…I want to be a realist.
- JPMorgan (NYSE:JPM) CFO: “In the first quarter, when we were really looking at a deep but short-lived downturn, we were really very much focused on most impacted sectors,” said JPMorgan Chief Financial Officer Jennifer Piepszak. “Now that we’re looking at a more protracted downturn, we’re reserved for a much more broad-based impact across sectors.”
- JPMorgan CEO: “We cannot forecast the future,” JPMorgan CEO James Dimon told analysts. “We don’t know. The word unprecedented is rarely used properly. This time it’s being used properly.”
- Wells Fargo (NYSE:WFC) Analyst: “People are scared, and they are responding by both banking their cash and basically prefunding their borrowing needs as much as they can,” Wells Fargo bank analyst Mike Mayo said.
Things are poised to get worse as reopening goes in reverse in the south. And things were not improving fast in the first place.
- Cass Transportation Index "Not Good By Any Measure"
- Housing Starts and Permits Improve But Not Enough
- China’s Unexpectedly Strong Growth Isn't What it Seems
- Industrial Production Rises But It is Far Below the Pre-COVID Trend
- Patients Stranded in Emergency Rooms as Hospitals Fill Up
Get The News You Want
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.