NEW YORK (Reuters) – Questions are building about whether big U.S. banks will have to cut dividends later this year as the coronavirus crisis puts a record portion of Americans out of work, making it difficult for borrowers to pay back loans. FILE PHOTO: Signage is seen posted on the entrance of the New York State Department of Labor offices, which closed to the public due to the coronavirus disease (COVID-19) outbreak in the Brooklyn borough of New York City, U.S., March 20, 2020. REUTERS/Andrew Kelly – RC2TNF9JT4Y7/File Photo Wall Street analysts were initially skeptical that U.S. lenders would have to follow European counterparts and non-financial companies that have already done so, but in recent days, some have started to take the possibility more seriously. Banks that have heavy exposure to credit cards are most at risk, they said. Those lenders, including Citigroup Inc (C.N), JPMorgan Chase & Co (JPM.N) and Capital One Financial Corp (COF.N), may breach Federal Reserve limits on using capital for dividends when loan losses escalate and erode profits. “One of the most important variables that will determine whether banks have adequate capital to maintain dividends is the extent to which consumers draw down on outstanding… Read full this story
- Mario Draghi: 'Reducing youth unemployment is a priority for everyone'
- UPDATE 2-Norwegian registered unemployment jumps due to coronavirus
- Fears PM's coronavirus welfare plan will see Australia's unemployment rate skyrocket
- Australia cuts benchmark interest rate to record low 0.25%
- RPT-Wall St Week Ahead-Investors hope Fed can help calm markets as big rate cut expected
- Swiss National Bank expected to shun interest rate cut: Reuters poll
- Hungarian central bank off the hook to hike rates as growth risks rise
- Marriott CEO says coronavirus is worse than the Great Depression and World War II as he cuts his salary to $0 - while Goldman Sachs says unemployment claims have already risen to TWO MILLION across the US
- Bars, restaurants and stores are boarded up as three million Americans prepare to file for unemployment and Donald Trump warns of a nationwide two-week quarantine to slow the spread of coronavirus
- UPDATE 2-Norway's unemployment rate soars to above 10% due to coronavirus, highest since 1930s
Soaring unemployment increases odds U.S. banks will cut dividends have 359 words, post on www.reuters.com at April 3, 2020. This is cached page on wBird. If you want remove this page, please contact us.