Large American Bank Releases Part of the Straw Pot

0 26,555

Some of the money that the major US bank JPMorgan Chase had set aside due to the corona crisis can already be released.

 

According to the financial group, due to all the support from governments and central banks and the start of vaccination programs, slightly less money is needed to absorb any credit losses.

On balance, JPMorgan has withdrawn $ 2.9 billion from its straw pot. As a result, the bank’s quarterly profit has risen sharply. Bottom line, JPMorgan had more than $ 12.1 billion left over the last three months of last year.

In the same period in 2019, a profit of 8.5 billion dollars went into the books.

Jamie Dimon said his bank still has more than $ 30 billion ready in case individual loans are never repaid due to the economic downturn. He emphasizes that this is a lot and also a fair reflection of the current uncertain situation.

Two other US banks, Citigroup and Wells Fargo, also reported higher quarterly profits due to the release of money previously set aside to absorb credit losses. At the same time, their income declined as interest rates remained low amid all stimulus measures.

Leave A Reply