The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

BP’s woes spill over into US banks

Region’s bank stock drops 13%; Community banks worst hit say analysts

As the BP oil spill in the Gulf of Mexico spreads its way to the shorelines of the Panhandle, the impact on the banks in the region is coming under increasing scrutiny. As the oil industry, local tourism, and fishing businesses suffer losses, repayments on consumer and business loans and mortgages are expected to be delayed, putting pressure on the local banks that serve the states along the shore of the Gulf of Mexico.

Larger banks are offering customers a break on their repayments. Citi announced in the middle of June that borrowers in the 25 miles of affected coastal areas with first mortgage loans owned by CitiMortgage would not be subject to foreclosure sales or foreclosure notifications until the middle of September, and that evictions on real estate-owned properties will cease during this time.

Smaller banks that are already struggling to stay afloat since the financial crisis, however, cannot afford to forgo payments.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree