Soured Corporate Loans Surge at Biggest U.S. Banks on Oil
- Troubled loans at BofA, JPMorgan, Wells are highest in years
- 'We're at the very early stages of an inflection point'
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Soured loans to companies jumped 67 percent at the three biggest U.S. banks in the first quarter, the latest sign that corporate credit quality is eroding after energy prices plunged.
At Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co., bad loans to companies reached their highest levels since at least 2013. For now, weakness is mainly confined to oil and gas and related industries, executives said. U.S. crude has tumbled more than 60 percent since June 2014, although they have rallied since February.