Posted on 10/22/2015 5:48:01 PM PDT by Lorianne
Banks, when reporting earnings, are saying a few choice things about their oil-and-gas loans, which boil down to this: it’s bloody out there in the oil patch, but we made our money and rolled off the risks to others who’re now eating most of the losses.
On Monday, it was Zions Bancorp. Its oil-and-gas loans deteriorated further, it reported. More were non-performing and were charged-off. There’d be even more credit downgrades. By the end of September, 15.7% of them were considered “classified loans,” with clear signs of stress, up from 11.3% in the prior quarter. These classified energy loans pushed the total classified loans to $1.32 billion.
But energy loans fell by $86 million in the quarter and “further attrition in this portfolio is likely over the next several quarters,” Zions reported. Since the oil bust got going, Zions, like other banks, has been trying to unload its oil-and-gas exposure.
(Excerpt) Read more at wolfstreet.com ...
Good article, thanks for posting. Some are in a deep hole, some are still digging, a few recognize the dug a grave.
I just survived a layoff at our facility this week. I work for a huge oilfield services company. This downturn is brutal. The weakness of this “president” to stand up to OPEC is killing us. But it fits into his goal of killing the only fossil fuels he can destroy. US coal and US oil and gas...
I’m pretty sure a bunch of large pension funds are among the “lucky” ones eating these losses.
What would you want him to do?
Cut back on defending them. Hold back arms shipments...
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