REUTERS / Mike Segar

  • US banks are lending less to businesses in Europe during the coronavirus pandemic, the The Financial Times reported Friday.
  • JPMorgan, Bank of America and Goldman Sachs are paying more attention to lending to large corporate clients across Europe, the newspaper said.
  • “We are increasingly seeing an ‘America first’ attitude among the big US banks,” an adviser told FT.
  • Visit the Business Insider homepage for more stories.

US banks are reluctant to lend to businesses in Europe as the coronavirus pandemic rages on, the The Financial Times reported Friday.

Lenders may seek to reduce their risk, keep more money, and avoid a recurrence of their problems during the loan period. financial crisis. They are paying more attention to taking out simple loans to large corporate clients across Europe, the Financial Times said, citing bankers, advisers and business executives.

Here are the banks that recently withdrew from or refused to participate in the lending talks, according to the report:

  • JP Morgan withdrew from talks about an additional line of credit for German chemicals giant BASF. He also waived a $ 400 million bailout deal for SSP, despite being the broker for the UK catering group.
  • Bank of America lent only half as much as six other banks that took out a state-guaranteed $ 3.3 billion loan to German sportswear titan Adidas. He also refused to participate in a capital increase for Cineworld, the struggling British film group.
  • JPMorgan and Bank of America also rejected UK publisher Informa’s short-term loan application and did not guarantee its $ 1.3 billion stock placement. Bank of America has been Informa’s broker for a decade.
  • Goldman Sachs took the financial risk of a $ 3.8 billion syndicated loan to Italian-American automaker Fiat Chrysler this month. However, he was not involved in a similar $ 13 billion installation for Daimler, the maker of Mercedes-Benz.

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America First Attitude

“We are increasingly seeing an ‘America first’ attitude among the big US banks,” an adviser involved in the business-to-bank talks in Germany told the Financial Times. “These are not just idiosyncratic cases, there is a clear pattern.”

European companies fear that they will not be able to rely on American banks, the newspaper reported.

While JPMorgan declined to comment on the situation of its individual clients, he told Business Insider US: “We provided over $ 25 billion in new loans to our clients in March alone, almost half of which was in March. Europe. Our commitment to businesses in the region remains unwavering.

Goldman Sachs and Bank of America did not immediately respond to requests for comment.

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