Relevant:
- European banks face prolonged energy exposure
- Wells Fargo Misjudged the Risks of Energy Financing
- For Fast Cash, Firms Tap Revolving Loans
- BofA earnings beat tempered by concern about weak oil price
- Dallas Fed Quietly Suspends Energy Mark-To-Market On Default Contagion Fears (WILL "REALTIME FAST 157 SUSPENSION" WORK??)
2016-02-23 — reuters.com
U.S. banks are finally putting tougher lending constraints on cash-strapped energy firms and, on average, such companies could see a 15 percent to 20 percent cut in their credit lines, the head of JP Morgan's commercial bank told investors on Tuesday.
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Moves by oil and gas companies such as Linn Energy and SandRidge Energy to max out revolving credit lines - in order to cover short-term funding gaps - have prompted banks to take action.
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.
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