Background
The majority of banks just reported first-quarter earnings and showed little increase in problem loans, non-accruals or charge-offs. Of course, the lockdowns from the pandemic had just started on March 31, too early to see loans even 30 days past due. Normally I would say, it's too early to see which banks are swimming naked. That is, which ones had loose underwriting during the recent past good times. But this time is different. A little-known government memo issued just a month ago has allowed us a peek.
Banks historically were reluctant to modify loans