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HSBC signals tsunami of bad loans as banks set aside $34bn

HSBC’s $3.8bn in provisions portends dangers for the global economy as the pandemic hammers growth

HSBC bank in central London
HSBC bank in central London Photo: Daniel Leal-Olivas/Getty Images

When JPMorgan kicked off bank earnings season in mid-July, it sent a strong signal to market watchers that the rest of the year would be grim.

The largest US bank set aside a record $10.5bn to brace for looming loan defaults, and chief executive Jamie Dimon warned the path of growth would be uncertain for quarters to come as the American economy suffers its deepest recession in history.

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