Oct
14
Wall Street Sets Aside More Cash to Cover Weakening Oil Loans
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Loan loss reserves up at JPMorgan, Wells Fargo, BofA
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Banks so far avoid worst of oil bust as risk distributed
Wall Street lenders that bankrolled the debt-fueled U.S. oil boom are putting aside more cash to cover potential energy losses as “lower for longer” takes its toll.
After rebounding to $61 a barrel in June, crude prices tumbled 24 percent in the third quarter. JPMorgan Chase & Co. said Tuesday that it increased its loan loss reserves for oil and gas by $160 million in the third quarter. Bank of America Corp.’s at-risk loans increased 15 percent from a year ago due to the deteriorating finances of some of its oil and gas borrowers. And Wells Fargo & Co. reported that it reserved additional cash to cover potential losses in the energy sector…
Wall Street Sets Aside More Cash to Cover Weakening Oil Loans
