Big banks set aside billions for potential loan defaults

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Big banks set aside billions for potential loan defaults
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JPMorgan Chase notched higher-than-expected earnings in the second quarter but braced for losses from borrowers defaulting on their loans, as the bank's outlook for the U.S. economy becomes more pessimistic

JPMorgan Chase notched higher-than-expected earnings in the second quarter but braced for losses from borrowers defaulting on their loans, as the bank's outlook for the U.S. economy becomes more pessimistic.

“This is not a normal recession,” CEO Jamie Dimon said, pointing to government assistance programs that have helped boost income and savings for consumers, as well as home prices. “The recessionary part of this you’re going to see down the road.” “We are extremely disappointed in both our second quarter results and our intent to reduce our dividend,” CEO Charlie Scharf said in a release. “Our view of the length and severity of the economic downturn has deteriorated considerably from the assumptions used last quarter.”

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