JPMorgan profit dives as banks brace for coronavirus-led loan defaults

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JPMorgan Chase & Co's profit plunged by more than two-thirds in the first quarter as the largest U.S. bank put aside nearly $7 billion in reserves to protect it from a wave of potential loan defaults in the months ahead.

- JPMorgan Chase & Co’s profit plunged by more than two-thirds in the first quarter as the largest U.S. bank put aside nearly $7 billion in reserves to protect it from a wave of potential loan defaults in the months ahead.

“If the economy gets worse, we’ll bear additional loss,” Dimon said on a call with analysts. “But we do forecast all of that. We know we can handle really adverse consequences.” In total, JPMorgan recorded charges worth $8.3 billion in the first quarter, mostly due to money the bank set aside to cover loans. JPMorgan also reported a $951 million-loss on derivatives and an $896-million markdown on its bridge loans.JPMorgan’s chief financial officer, Jennifer Piepszak, that the bank may “meaningfully” increase the amount it is holding in credit reserves next quarter and later in the year if the economy worsens.

The reserves included $4.5 billion against potential consumer loan defaults as millions of Americans lose their jobs and struggle to make payments on anything from iPhones to cars to new microwaves.

 

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fuck yeah here we go

🤓

No toobigtofail rules this time plzzzz.

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