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Reuters: U.S. Banks to Cut Credit Lines for Energy Firms

February 24, 2016, 07:49 AM
Filed Under: Energy
Related: Energy, JP Morgan, Reuters

Reuters reports that cash-strapped energy firms are coming under increasing pressure from U.S. bank lenders and, on average, could see a 15 percent to 20 percent cut in their credit lines. The Reuters article references comments  the head of JP Morgan's commercial bank told investors on Tuesday, Feb. 23.

Reuters said that until now, banks could be more lenient with their energy clients despite a prolonged slump in the price of oil. The Reuters article further notes that Doug Petno, the head of JP Morgan's commercial bank, said that is changing.

The Reuters article notes that Petno said JP Morgan was not waiting for April, when banks traditionally reassess the value of oil reserves underpinning energy loans - a process known as redetermination - to reassess its exposure.

Read the Reuters article U.S. Banks to Cut Credit Lines for Energy Firms: JP Morgan.

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