America’s largest banks are set to earn hundreds of millions of dollars in fees paid out by the federal government under its Paycheck Protection Program, according to S&P Global
The loan program is designed to help smaller American businesses survive the coronavirus recession, and was part of Washington’s $2 trillion economic stimulus package.
But the program has come under intense scrutiny in recent days after the Small Business Administration disclosed that the loans have been doled out not only to mom-and-pop businesses but also to billionaires like Kanye West, large chain restaurants and Washington lawmakers.
The S&P analysis found that more than 30 community banks could earn as much from emergency small-business loans as they reported in net revenue for all of 2019.
JPMorgan Chase (JPM), America’s biggest bank, issued the most PPP loans out of any bank, processing $28.8 billion of loans as of June 20, according to S&P. That could yield the bank more than $800 million in fees. Bank of America (BAC) was the second biggest issuer at $25.2 billion.
Smaller banks — those with assets under $250 million — also stand to get a significant windfall. – READ MORE
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