
By Tyler Durden | 16 April 2020
ZERO HEDGE — Yesterday, when looking at the latest credit loss reserve numbers from America’s top banks which amounted to $27 billion among the big 7 banks, a number which was understandably 4x greater than the total provisions set aside a year ago…
… we said that despite the significant increase (mostly at JPMorgan which traditionally has been one of the most conservative banks), the number won’t be nearly sufficient by the time the corona-cession is over. Why? Because as we also showed, the last time the US economy suffered a horrific recession, similar to the one right now, the total loan loss reserve to total loans ratio soared to between 4 and 6%. It is now only between 1.5% and 2.5%.
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