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Bank of America: Pandemic is The Most Tumultuous Period Since The Great Depression, We’re Setting Aside $5 Billion For Expected Loan Losses

Bank of America: Pandemic is The Most Tumultuous Period Since The Great Depression, We’re Setting Aside $5 Billion For Expected Loan Losses

Bank of America is following in its peers’ footsteps and setting aside billions to brace for major losses as a result of expected coronavirus defaults. Automated Teller Machines (ATM) at the Bank of America amid the global coronavirus COVID-19 pandemic, Sunday, April 26, 2020, in Monterey Park, Calif. (Kirby Lee via AP)

Bank of America (BofA) is following in its peers’ footsteps and setting aside billions to brace for major losses as a result of expected coronavirus defaults. Last week, JP Morgan Chase, Wells Fargo and Citigroup all announced they’ve been stockpiling billions to cover losses and now Bank of America is doing the same.

With profits down more than 50 percent, Bank of America said it is setting aside $5 billion to buffer future loan losses. Its CEO Brian Moynihan said due to coronavirus, America is experiencing its “most tumultuous period since the Great Depression,” reported Yahoo Finance.

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“Strong capital markets results provided an important counterbalance to the COVID-19-related impacts on our Consumer business,” Moynihan said.

Based in Charlotte, North Carolina, BofA’s net income fell 11 percent and its consumers net income fell to $71 million from $3.29 billion the prior year.

Stock market shares also fell. However, since the bank set aside more reserves in its first quarter than some of its peers, it did not fall as sharply as they did.

BofA is also facing backlash from conservative customers because it pledged to donate $1 billion to the Black Lives Matter movement for racial justice.