Big losses for U.S. banks

Press, 23 July 1987, Page 30

Big losses for U.S. banks

NZPA-Reuter New York America’s biggest banks posted staggering secondquarter losses this week, after raising their reserves for bad loans to reflect the likelihood of recovering all the money lent in past years to Third World nations.

In an expected announcement, Citicorp said it lost 5U52.59 billion in the second quarter, the largest loss ever posted by a U.S. bank, after adding SUS 3 billion to its reserve for risky loans. Bankers Trust, the nation’s eighth-largest commercial bank, said it lost SUSSS4 million in the

second quarter. The loss, also expected, followed its previously announced decision to add SUS7OO million to its loan-loss reserve.

First Interstate Bancorp of Los Angeles and San Francisco-based Wells Fargo and Co, the nation’s ninth and 10th largest banks respectively, also lost money in the second quarter. First Interstate reported a 5U5469.8 million loss after adding SUS7SO million to its reserves and Wells Fargo said it would add SUSSSO million to its loan-loss reserve, resulting in a 5U5293.7 million loss.