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JPMorgan, Bank of America, Citi among banks facing US probe over PPP loans

"The banks' wealthiest clients had access to a personalized application process that ensured their applications were processed first," according to the letters sent by the committee Monday

JP Morgan Chase & Co

FILE PHOTO: JP Morgan Chase & Co corporate headquarters in New York

A House panel overseeing the coronavirus response is looking into whether several banks, including JPMorgan Chase, Bank of America, Wells Fargo & Co and Citigroup Inc., favored larger, well-connected companies over smaller firms from rural or minority communities when making small-business loans to combat the economic fallout from the coronavirus pandemic.

The investigations, launched by the Democratic-led Select Subcommittee on the Coronavirus Crisis, also are seeking details from the Treasury Department and Small Business Administration about companies that received Paycheck Protection Program aid and all communication with lenders regarding the handling and prioritizing of loans.

“Some large lenders apparently created a two-tier

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First Published: Jun 16 2020 | 1:35 AM IST

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