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Investment Banking

Banks are ready for wave of pandemic defaults

JPMorgan, Citigroup and Wells Fargo stockpile $28bn to cover potential loan losses

The largest US banks signalled that the worst of the coronavirus recession is yet to come, opting to stow away tens of billions of dollars to prepare for an expected wave of loan losses.

JPMorgan, Citigroup and Wells Fargo said on 14 July they took large hits to their second-quarter profits to collectively stockpile $28bn to cover losses as consumers and businesses start to default on their loans.

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