Massive banks put aside billions for potential mortgage defaults

Massive banks put aside billions for potential mortgage defaults

“This isn't a standard recession,” CEO Jamie Dimon stated, pointing to authorities help applications which have helped enhance revenue and financi

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“This isn’t a standard recession,” CEO Jamie Dimon stated, pointing to authorities help applications which have helped enhance revenue and financial savings for customers, in addition to residence costs. “The recessionary a part of this you’re going to see down the highway.”

Nonetheless, the financial institution was boosted by a document quarter for its bond-trading division, which introduced in $7.three billion, doubling its income from the identical interval final 12 months. That comes because the Federal Reserve has bolstered company debt markets, resulting in a bonanza of bond gross sales over the previous few months.

JPMorgan’s equities division noticed positive aspects, too, posting $2.four billion in income, a 38 p.c leap.

Wells Fargo, which additionally gave its quarterly replace to traders Tuesday, reported a internet lack of $2.four billion, its first drop in over a decade. It additionally added $8.four billion to its reserves to organize for potential credit score losses. The financial institution slashed its dividend to 10 cents a share.

“We’re extraordinarily disillusioned in each our second quarter outcomes and our intent to scale back our dividend,” CEO Charlie Scharf stated in a launch. “Our view of the size and severity of the financial downturn has deteriorated significantly from the assumptions used final quarter.”

In a name with traders, Scharf acknowledged that the Fed’s cap on the financial institution’s development — imposed after a collection of shopper scandals had been…



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