The « Too Big To Fail » Banks Are Getting Ready For Their Worst Quarter Since The Financial Crisis

U.S. banks could be setting up for their worst quarter in more than a decade as loan loss provisions and the pandemic are set to wreak havoc on bottom lines.

Next week, many of the « too big to fail » banks are set to report earnings and are likely going to show that a drop in consumer spending and higher loan losses were not offset by better trading gains. Loan-loss provisions should reach their highest levels since the financial crisis, Barclay’s predicts.

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