JPMorgan Chase, Bank of America, Wells Fargo and Citi Lose $6,900,000,000 From Sour Loans As Analyst Warns Notorious Debt Bubble Is Popping
Author: Content Editor
The four largest banks in the US, JPMorgan Chase, Wells Fargo, Bank of America, and Citi, have collectively recorded $6.9 billion in net charge-offs in Q3 of this year. This is primarily due to credit card delinquencies and soured consumer loans. JPMorgan experienced a 40% increase in net charge-offs, while Wells Fargo saw a surge of nearly 54%. Citi's net credit on losses jumped over 32%, and BofA's net charge-offs increased by 64% compared to the previous year. This occurred as US credit card rates reached an all-time high in August, and total credit card debt has reached $1.36 trillion, the highest level in history. The increase in credit card debt combined with high interest rates and serious delinquency rates poses a potential credit card debt bubble.