Big Banks Are Padding Profits With 'Reserve' Cash
Saturday, October 26, 2013 at 11:56AM Federal regulators have warned banks to be careful about padding their profits with money set aside to cover bad loans. But some of the nation's biggest banks did more of it in the third quarter than earlier this year.
J.P. Morgan Chase JPM +0.55% & Co., Wells Fargo WFC +0.40% & Co., Bank of America Corp. BAC +0.64% and Citigroup Inc., C -0.18% the nation's largest banks by assets, tapped a total of $4.9 billion in loan-loss reserves in the third quarter, up by about a third from both the second quarter and the year-ago quarter after adjustments. All the banks except Citigroup showed significant increases compared with the second quarter.
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