US banks prepare for a flood of bad loans

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US banks prepare for a flood of bad loans
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JPMorgan Chase told investors on Tuesday that it has set aside $6.8 billion to protect against an expected wave of loan defaults. Wells Fargo is also bracing for trouble, earmarking $3.1 billion to protect against bad loans.

A version of this story first appeared in CNN Business' Before the Bell newsletter. Not a subscriber? You can sign up right here.London JPMorgan Chase told investors on Tuesday that it has set aside $6.8 billion to protect against an expected wave of loan defaults. Wells Fargo is also bracing for trouble, earmarking $3.1 billion to protect against bad loans.

Jamie Dimon, the CEO of JPMorgan, said the first quarter had presented the bank with"unprecedented challenges." The lender witnessed record demand for revolving credit facilities as the coronavirus crisis deepened.Companies drew on their credit lines at"probably twice the rate than in the financial crisis [of 2008]," Dimon said on an earnings conference call.

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