Famously Public-Minded Bank Doing All It Can To Help Out

On Friday, the federal government’s small-business rescue loan program began. Bank of America got $22 billion in applications. For its part, JPMorgan Chase had already approved some $25 billion in credit extensions last month.

Wells Fargo, which is famous for sharing its limited wealth with the needy, opened its small-business loan portal on Saturday—and all but closed it yesterday.

“While we are actively working to create balance sheet capacity to lend, we are limited in our ongoing ability to use our strong capital and liquidity position to extend additional credit,” Chief Executive Charlie Scharf said in a statement…. The San Francisco-based lender said it has likely reached its $10 billion limit based on the applications it has already received, and will prioritize giving loans to non-profits and businesses with fewer than 50 employees.

Oh, also, if you’re looking for a little mortgage help, uh, look elsewhere, unless you’ve got a quarter-billion stashed under Charlie Scharf’s mattress.

America’s largest mortgage lender will only refinance jumbo mortgages for customers who hold at least $250,000 in liquid assets with the bank, according to a bank spokesman. The change is effective immediately.

That means that a customer who already has a jumbo loan with Wells Fargo can’t refinance to take advantage of falling rates unless they keep money with the bank. The bank hasn’t changed policies for loans used to purchase properties.

Wells Fargo caps its role in coronavirus rescue program at $10 billion [CNBC]
Wells Fargo Curtails Jumbo Loans Amid Market Turmoil [WSJ]
JPMorgan CEO James Dimon Says He Is Expecting ‘a Bad Recession’ [WSJ]

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