JPMorgan Chase and Bank of America Suffer $4,500,000,000 in Losses As 'Unrecoverable Debt' Soars: Report - The Daily Hodl
JPMorgan Chase and Bank of America Suffer $4,500,000,000 in Losses As 'Unrecoverable Debt' Soars: Report - The Daily Hodl
The two largest banks in the US say they expect to lose a collective $4.5 billion from customers who are essentially unable to pay their bills.
Interesting article.
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.
Banks having "sound" balance sheets while losing actual boatloads of money to sub-prime lending makes me a little nervous, having lived through the year 2008 and all.
BoA and Chase are both above the limit that they have to have a decent chunk of actual non-invested cash. Trump increased the limit of when that is necessary and i haven't heard of Biden dropping it back down. Lack of cash reserves is an important part of why a number of small-mid size banks were capable of failing.
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