U.S. banks put the squeeze on cash-strapped energy firms-JP Morgan

NEW YORK, February 23 (Reuters) - Bank of America ultimately imposes stricter lending restrictions on financially deficient energy companies, which reduce average credit line by an average of 15% to 20% And People Bank, who is responsible for JP Morgan's commercial responsibilities, told investors Tuesday

Despite the long-term decline in oil prices so far, banks were tolerant to energy customers, but Doug Pateno, JP Morgan's commercial banking director, said the situation is changing It was.

Oil and gas companies such as Linn Energy and SandRidge Energy maximize the rotating credit facility to compensate for the short-term fund shortage and make the bank act

According to Mr. Petten, JP Morgan was called redecision until April that banks reevaluate the value of oil reserves to support energy loans and reevaluate exposures.

In a speech by Morgan Chase on annual investor day held in New York, he said, "I will not wait to talk with customers about this issue again in the spring."

The largest asset bank in the US plans to increase the expected reserve for defective energy loans by more than 60% in the first quarter.

Mr. Petner said the credit facility is expected to shrink by an average of 15% to 20% across the industry, but said it will vary greatly depending on the health condition of the borrower.

As crude oil prices in the previous month fell below $ 30 a barrel, companies were forced to take down assets and keep the staff alive.

According to a survey by Deloitte, dozens of companies are launching and this year one third of oil producers and service companies, or 175 companies are said to be at high risk of bankruptcy.

"Because most of these customers work with banks before resuming, they are persuasive discussions with persuasive M & A, its attractive asset sale, and private equity.Roles, "Petono said.

"The most painful customer knows when to be narrowed down ... and we are taking measures to deal with it," he added. "There will be quite a few of these players that have no choice, I think we just started seeing the scope of oil and gas bankruptcy" (reported by Carmel Crimmins, edited by Bill Rigby)

JP Morgan Chase is the second largest financial services company in the United States. This was formed by the merger of Chase Manhattan, a retail banker in 2001, and JP Morgan Chase, an investment bank. The company is comprised of retail banking and wholesale banking, ranked # 1 in the Fortune 500. (Www.jpmorgan.com/investmentbanking) Investment banking is a very specialized area of ​​the financial industry. Its basic functions directly lead to financial market mechanisms, huge depositors, savings collection agencies, and institutions wishing to increase additional investment funds. Investment banks must distinguish them from ordinary banks and other savings and savings management agencies. The use of financial markets is the core of investment banking business.

After stopping the credit card transaction, JP Morgan Chase, a leading investment banker, was charged with a request for encryption currency purchase. The additional cost is because the purchase is considered as prepaid cash. According to the lawsuit, it not only charges an additional fee, but also refuses to issue a refund after requesting a higher interest rate. The plaintiff was American Brady Tucker. However, the lawsuit represents a nationwide category. The defendant violated the US law law

Basically it is for small man. Inhabitants of Idaho sued J. P. Morgan in a federal lawsuit in the millions of dollars, claiming that they charged unexpected charges for cryptographic currency transactions to banks. Plaintiff claimed Chase claimed an additional fee in his transaction and raised interest rates such as cash advance payment and credit card purchase without early warning. When the customer sued, the bank refused to refund these fees. This led to a lawsuit because Chase could have violated the US law law. The amount of statutory damages is one million dollars. Reuters