Banks globally have been one of the worst-performing parts of the stock market since the COVID-19 pandemic hit, especially US Banks. The main reason US banks have done so poorly in recent months is that they could face a wave of loan defaults if elevated unemployment persists. Banks have already set aside billions this year to cover expected as well as unexpected loan losses, but if the pandemic worsens or government support dries up, it might not be enough. In addition, interest rates have fallen to record lows as a result of the pandemic, which is bad news for banks. As such, let’s explore why they’ve underperformed and how the pandemic has affected, as well as how it could continue to impact, their businesses. In this article, we will be covering the 3 main US banks namely JP Morgan, Wells Fargo, and Bank of America. How Banks Traditionally Make Money Banks have been around for the longest time ever, but many of us may still don’t exactly know how they work. Most people do their banking at a commercial bank, a financial institution that provides services such as checking accounts, offering loans, and accepting deposits.  ...