2016-01-19 — cnn.com
Wells Fargo is sitting on more than $17 billion in loans to the oil and gas sector. The bank is setting aside $1.2 billion in reserves to cover losses because of the "continued deterioration within the energy sector. JPMorgan Chase is setting aside an extra $124 million to cover potential losses... It warned that figure could rise to $750 million if oil prices unexpectedly stay at their current $30 level for the next 18 months.. Citigroup built up loan loss reserves in the energy space by $300 million... If oil stays around $30 a barrel, Citi is bracing for about $600 million of energy credit losses in the first half of 2016. Citi said that figure could double to $1.2 billion if oil dropped to $25 a barrel and stayed there.
... [But] Paul Miller, a banking analyst at FBR, said oil loans don't represent nearly the same threat to banks that mortgages did last decade... "The big banks might have 1% to 6% of exposure. That's not going to kill them. This is not like 2006 or 2007," Miller said.
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