Apr
07
Moody’s Sees $9 Billion Hole at U.S. Banks in Worst-Case for Oil
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Wall Street’s loan-loss reserves fall short in such a scenario
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Biggest banks could absorb losses with one quarter’s profit
Wall Street’s biggest banks need to set aside more cash to cover losses as low oil prices take their toll, according to Moody’s Investors Service.
Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. would need an additional $9 billion to cover souring oil and gas loans in the worst-case scenario, the ratings firm said Thursday in a report. Still, the banks would be able to absorb such losses out of one quarter’s earnings, Moody’s said…
Moody’s Sees $9 Billion Hole at U.S. Banks in Worst-Case for Oil