JPMorgan Chase and Bank of America Suffer $4,500,000,000 in Losses As ‘Unrecoverable Debt’ Soars: Report
The two largest banks in the US are declaring a loss on $4.5 billion in debts that customers are unable to pay.
April 27 DailyHodl
JPMorgan Chase says its net charge-offs, which are debts that the bank does not expect to receive, hit $2 billion in the first quarter of this year, reports Reuters.
That’s nearly twice the amount of unrecoverable debt compared to the same quarter last year.
Meanwhile, Bank of America reported $1.5 billion in net charge-offs, a surge from $807 million a year prior.
BofA says those losses stem mainly from credit card debt that will likely never be paid.
“Bank of America is seeing ‘cracks’ in the finances of borrowers with below-prime credit scores whose household spending is affected by higher interest rates and inflation, Chief Financial Officer Alastair Borthwick told analysts on an earnings call…
While lenders earn money from interest payments, they seek to avoid situations in which customers fall so far behind on loans that they have to be written off.”
Net charge-offs are also on the rise at Citigroup and Wells Fargo as a recent poll from the Federal Reserve finds most banks are now tightening lending standards for most types of loans.
Advertisement
______________________________________________________
“Banks reported tighter standards and weaker demand for home equity lines of credit (HELOCs). Moreover, for credit card, auto, and other consumer loans, standards reportedly tightened, and demand weakened on balance.”
Despite the losses, both JPMorgan Chase and Bank of America say their balance sheets are sound.
JPMorgan Chase earned $49.6 billion in profit last year, while Bank of America earned $24.9 billion.
______________________________________________________
If you wish to contact the author of a post, you can send us an email at voyagesoflight@gmail.com and we’ll forward your request to the author (if available). If you have any questions about a post or the website, you may also forward your questions and concerns to the same email address.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © Dinar Chronicles
